HK Stock Market Move | COSCO SHIPPING Energy Transportation (01138) rose over 7% in the afternoon; management expects the sharp surge in freight rates in September to be reflected in fourth-quarter results.

COSCO SHIPPING Energy Transportation (01138) rose over 7% in the afternoon. As of press time, it was up 6.23% at HK$20.46, with a turnover of HK$385 million. On the news front, oil shipping freight rates have been rising for consecutive days recently, with rates on multiple routes hitting record highs. The TCE on the TD3C route once reached US$1.213 million per day. Wu Jialu, chief analyst at CITIC Futures, said that the overall volume of transactions that can be concluded on the TD3C route is currently limited, but the overall daily charter rate level remains at its highest, indicating that market sentiment is at an elevated level. It is expected that oil tanker shipping freight rates will remain highly prosperous in the fourth quarter. Morgan Stanley issued a research report stating that, benefiting from higher freight rates and improved utilization, COSCO SHIPPING Energy Transportation's profit for the third quarter of this year is expected to improve quarter on quarter. The company's management expects that most of the sharply rising freight rates in September will be reflected in fourth-quarter results, and that disruptions in the Strait of Hormuz may last longer than expected, supporting a continued bull market in oil tanker shipping.