HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rises by over 6% again, VLCC freight rates remain at extremely high levels. Institutions are observing the situation on the straits.

COSCO Shipping Energy Transportation (01138) rose by over 6%, reaching an increase of 6.22% to HK$19.31 as of the time of writing, with a trading volume of HK$415 million. On the news front, the latest weekly report from Clarksons pointed out that after entering the second week of the Middle East conflict, the oil tanker and energy markets are still facing significant impacts, with the passage of ships through the Strait of Hormuz still low by about 95% of normal levels, and attacks on ships, ports, and refineries are continuing. The report also noted that while the oil tanker market showed a "general softening" compared to the previous week, the average VLCC spot earnings are still around $180,000 per day, remaining at a very high level overall. CMSC released a research report stating that the escalation of the US-Iran conflict is becoming long-term, with the formation of a de facto interruption in maritime routes. The reduction in Middle East cargo volumes will also affect freight rates, while alternative routes such as West Africa and the US Gulf have relatively abundant capacity and high prices have seen some decline. It will still be necessary to observe the passage conditions through the strait, and if limited passage can be established, oil tankers will present an optimal situation of "quantity with price" in the future.