HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rises by more than 3% again. The tightening of sanctions on oil tankers is beneficial for compliance in the market. Goldman Sachs is optimistic about the company's profit improvement.

COSCO Shipping Energy Transportation (01138) rose by over 3%, reaching 3.41% at the time of reporting, reaching 7.88 Hong Kong dollars, with a trading volume of 129 million Hong Kong dollars. On the news front, the U.S. Treasury Department previously sanctioned Russian oil traders, oil field suppliers, and Russian energy officials, as well as over 180 ships suspected of being part of a "shadow fleet" transporting Russian oil exports sanctioned by the United States. Morgan Stanley stated that the sanctions may gradually drive the "shadow fleet" out of the market, which will benefit the legal tanker market. The bank believes that the negative sentiment reflecting weaker-than-expected performance in the fourth quarter of 2024 may turn positive. The bank has a positive view on COSCO Shipping Energy Transportation. Goldman Sachs believes that there is an upside risk to tanker freight rates, mainly due to the need for sanctioned oil exports to be replaced by compliant trades and transported by compliant tanker fleets, as well as other factors such as the shadow fleet accelerating its exit. The bank predicts that tanker supply may be limited, which will increase the tanker's time charter equivalent (TCE) benchmark income, thereby boosting the profitability of COSCO Shipping Energy Transportation.