HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rises more than 6% in early trading, expectations of US-Iran talks to resume in the Persian Gulf boost. Spot freight rates on major routes spike.

COSCO Shipping Energy Transportation (01138) rose more than 6% in early trading, rising 6.28% to HK$16.93 as of the time of writing, with a turnover of HK$2.44 billion. On the news front, Qatar and Pakistan issued a joint statement, stating that the first round of high-level talks held in Switzerland under the framework of the US-Iran Memorandum of Understanding has ended, with all parties finalizing a 60-day roadmap. Cathay Haitong released a research report stating that the expectations for the reopening of the US-Iran talks in the Strait of Hormuz have increased, leading to a sharp increase in spot freight rates on major routes. The Middle East TD3C route has jumped to nearly $500,000 per day, with Yambu achieving a deal at $230,000 per day, and rates in the US Gulf have risen by nearly 30% to $150,000 per day, while rates in West Africa have increased by over 80% to $170,000 per day. J.P. Morgan previously released a research report stating that a peace agreement between the US and Iran significantly increases the possibility of the reopening of the Strait of Hormuz, providing a positive catalyst for tanker stocks. The reopening of the Strait will increase the likelihood of normalizing crude oil procurement activities and rebuilding inventories, thereby driving tanker demand. It reiterated a "buy" rating for COSCO Shipping Energy Transportation with a target price of HK$27.