HK Stock Market Move | COSCO Shipping Energy Transportation (01138) soared by more than 20% as the US and Iran reach a peace agreement. Oil shipping capacity utilization rates are expected to return to high levels.

COSCO Shipping Energy Transportation (01138) surged more than 20%, rising 20.87% to HK$17.2 as of the press time with a trading volume of HK$295 million. On the news front, according to Xinhua News Agency, US President Trump tweeted on social media on the 14th that the US-Iran agreement is "now complete," and he has "authorized" the Strait of Hormuz to be "open for free" and for the US Navy to immediately lift related blockades. Iranian media reported on the 15th that the Iranian Supreme National Security Council issued a statement in the early morning of that day, officially confirming the ceasefire memorandum reached between Iran and the US. Guotai Haitong previously released a research report stating that expectations for the US-Iran agreement to be reached again will involve arrangements for strait shipping. The industry is optimistic about the demand for replenishment and shipping price performance after the strait is reopened. The utilization rate of oil shipping capacity will return to a high level, and the increase in production and replenishment will exceed expectations, leading to a high level of prosperity. The longer the strait is blocked, the longer the replenishment will continue. The bank pointed out that the dividend yield of COSCO Shipping Energy Transportation has exceeded 5%, which will support the lower limit of valuation.