HK Stock Market Move | COSCO SHIPPING Energy Transportation (01138) fell more than 4% in morning trading; limited inquiries combined with substitution by smaller vessels led to a short-term adjustment in the VLCC market.

COSCO SHIPPING Energy Transportation (01138) fell more than 4% in morning trading. As of press time, it was down 3.67% at HK$15.22, with a turnover of HK$216 million. On the news front, recently, with the conclusion of the U.S. midterm elections, crude oil prices have fallen significantly, and the market has begun to trade on easing conflicts. Huayuan Securities released a research report stating that limited inquiries combined with substitution by smaller vessels led to a short-term adjustment in the VLCC market. Last week, the VLCC market "opened high and closed low." Expectations of easing tensions in the Middle East and the sharp drop in oil prices led to limited short-term inquiries, while the continued improvement in the substitution economics of Suezmax tankers weighed on shipowners' expectations. EB SECURITIES believes that although crude tanker freight rates have retreated from their highs, spot freight rates remain at relatively high levels, and the subsequent trend will depend on the navigation environment in the Strait of Hormuz, vessel turnover efficiency, and changes in cargo volumes; for refined oil freight rates, attention should be paid to changes in cargo volumes and capacity supply and demand. It recommends watching COSCO SHIPPING Energy Transportation and China Merchants Energy Shipping.