HK Stock Market Move | COSCO Shipping Energy Transportation (01138) falls by over 6% again. Uncertainty remains in the Strait's navigation, and crude oil freight rates have not shown a sustained significant increase.

COSCO Shipping Energy Transportation (01138) fell more than 6% again, as of the time of publication, down 5.9% to HK$14.35, with a turnover of HK$169 million. On the news front, shipowners are still concerned about factors such as the safety of passage through the Strait of Hormuz, and freight rates have not shown significant upward momentum, and have even fallen. According to Poten, after the reopening of the Strait of Hormuz, crude oil freight rates briefly surged due to a concentration release of short-term ship demand, but did not lead to a sustained and significant increase. The main reasons are still high uncertainties related to safety, insurance, routes, and navigation controls. COSCO Shipping Energy Transportation recently held a shareholders' meeting. Regarding the current situation of ship passage in the Persian Gulf, the company revealed that there are no ships stranded in the Gulf, but some ship operations have been temporarily impacted. Management admitted that in the first quarter, some oil tankers experienced operating days losses due to the blockade of the Strait of Hormuz, and the impact will continue in the second quarter, prompting the company to alert market risks. Due to the upward movement of market freight rates, the company's tanker sector gross margin reached 42.2%, an increase of 24.7 percentage points year-on-year. Among them, the gross profit of the foreign trade oil transport business reached 2.241 billion yuan, a year-on-year increase of 317.6%.