HK Stock Market Move | Shipping stocks fell further in the closing hours, with institutional sources suggesting that the peak shipping prices may have already occurred and there may be a lack of upward momentum in mid-term shipping prices.

Shipping stocks fell sharply in the afternoon, as of the time of writing, SITC (01308) fell by 4.1% to 19.18 Hong Kong dollars; Sinotrans Limited (00598) fell by 2.8% to 3.47 Hong Kong dollars; COSCO Shipping Holdings (01919) fell by 2.12% to 12 Hong Kong dollars; OOIL (00316) fell by 1.08% to 101.2 Hong Kong dollars. On the news front, there have been reports recently that a ceasefire agreement between Hamas and Israel has made significant progress. Huatai Futures pointed out that the current high point of freight rates may have already appeared, and historically freight rates have continued to fluctuate downward from January to March; negotiations between Israel and Palestine continue to progress, with expectations of the Suez Canal resuming passage in the future. Futures contracts face double pressure from freight rate rhythms and geopolitical factors, which are expected to continue until March. Guosen pointed out that with the combined effects of Trump's tariff increases, pre-holiday stocking before the Spring Festival, and shipping companies raising prices, the US route has seen a significant rebound. However, the European route has shown a weak trend after the start of negotiations, considering that capacity is still growing rapidly. We expect a lack of upward momentum in mid-term freight rates and significant uncertainty in the short term.