Hong Kong Dry Bulkers Up, but Sell into Strength

Most HK-listed dry bulk shippers higher, supported by Baltic Dry Index strength; but gains likely unsustainable, says Louis Tse at Value Convergence CEF. “There is a rebound for basic good and material transportation, due to rise in infrastructure demand following China’s stimulus package, but as overall global economic outlook remains weak, it would be hard to see gains in the BDI could continue in the medium-term,” says Tse. Suggests investors sell into strength. Within sector, China Cosco (1919.HK) +1.4% at HK$5.61, Pacific Basin (2343.HK) +4.0% at HK$4.96, China Shipping (1138.HK) +0.1% at HK$8.72.