HK Stock Market Move | The stock of OOIL (00316) fell by more than 4% today. Institutions have stated that the Middle East situation has a relatively small direct impact on the shipping industry.

Shipping stocks fell today. As of the time of publication, COSCO SHIPPING Development (02866) fell by 2.8% to 1.04 Hong Kong dollars; OOIL (00316) fell by 2.52% to 131.4 Hong Kong dollars; COSCO Shipping Holdings (01919) fell by 2.01% to 13.66 Hong Kong dollars; SITC (01308) fell by 1.19% to 25 Hong Kong dollars. On the news front, U.S. Vice President Pence stated that Trump may take action to stop Iran's nuclear program. Huatai Futures pointed out that the supply and demand on the U.S. line have both increased, and the freight rates on the East and West coasts of the U.S. have fallen from their peak; there has been some downward pressure on the capacity of European routes in June. The firm pointed out that the ongoing conflict between Israel and Iran may impact the passage of the Strait of Hormuz, which has a significant impact on oil transportation but a relatively small impact on container shipping. Morgan Stanley released a research report earlier this month stating that the future stock price of OOIL will decline in the next 60 days, with a probability of about 70% to 80%. The firm maintained its "underweight" rating on the stock with a target price of 100 Hong Kong dollars. The firm believes that the recent rise in the stock price of Orient Overseas has significantly reduced its short-term valuation attractiveness, and the firm believes that the optimistic sentiment in the container shipping market may decline before reaching its peak in fundamentals. The short-term imbalance in supply and demand leading to an increase in spot prices may start to subside in the next 2 to 4 weeks.