HK Stock Market Move | COSCO Shipping Energy Transportation (01138) fell by more than 6% again. Geopolitical premium vanishes, and ships moving westward has led to oversupply of oil transportation, suppressing market sentiment.

COSCO Shipping Energy Transportation (01138) fell by over 6% again. As of the time of writing, it dropped by 5.04% to 14.33 Hong Kong dollars with a trading volume of 145 million Hong Kong dollars. In terms of news, on the early morning of the 3rd local time, the Iranian Islamic Revolutionary Guard Corps issued a statement stating that on the evening of the 2nd, a US military shell hit an Iranian oil tanker near the Strait of Hormuz, causing damage to its engine room. In response to "this act of aggression and violation of the rules of the Strait of Hormuz", the Iranian Islamic Revolutionary Guard Corps attacked the US-owned vessel "Panama" with missiles. China Securities Co., Ltd. released a research report stating that the current high points of freight rates from the US Gulf and West Africa to China have dropped by about 42% and 68% respectively. The disappearance of geopolitical premiums and the westward movement of ships have led to an oversupply suppressing the market. Guotai Junan pointed out that global crude oil shipping exports in March-April decreased by over 10% year-on-year, with the largest decrease in mid-March exceeding 20% and a decrease of about 12% in April.