HK Stock Market Move | COSCO Shipping Energy Transportation (01138) falls by more than 5% again, due to geopolitical tensions leading to a decrease in strait traffic. The company expects a 7% increase in net profit in Q2 compared to previous quarter.

COSCO Shipping Energy Transportation (01138) fell by over 5% again, as of the time of publication, it dropped by 5.12% to HKD 12.41, with a turnover of HKD 1.25 billion. On the news front, tensions between the US and Iran continue to escalate. The US military struck about 140 Iranian military targets. Iran, in turn, launched a series of attacks on US targets in the Middle East in response to the US attacks. In terms of passage through the Strait of Hormuz, the US military said that the strait is "still open", while Iran stated that the strait is currently impassable. After Iran announced the closure of the Strait of Hormuz again, commercial shipping traffic in the strait significantly decreased. In addition, COSCO Shipping Energy Transportation announced a profit increase, with an estimated 141% year-on-year growth in net profit for the first half of the year, with freight rates for all types of ships significantly higher than the same period in 2025. Public information shows that the company's net profit for the first quarter is 2.173 billion, based on this calculation, the estimated net profit for the second quarter is 2.327 billion, with an expected increase of 7% compared to the previous quarter.