HK Stock Market Move | COSCO SHIPPING Energy Transportation (01138) once fell more than 8%, after its stock price had cumulatively risen over 80% in the previous two months.

COSCO SHIPPING Energy Transportation (01138) pulled back from highs today, once falling more than 8%. Its stock price had cumulatively risen over 80% in the previous two months. As of press time, it was down 5.89% at HK$19.35, with a turnover of HK$654 million. On the news front, tanker freight rates have recently accelerated upward, with VLCC daily charter rates breaking through the US$1 million mark to set a historic record. BOCI previously noted that, overall, the current market is driven by both geopolitical risk and supply-demand fundamentals. Short-term conflicts are unlikely to subside quickly, and the risk premium will persist. Attention should be paid to potential freight rate volatility arising from a possible easing of tensions after the U.S. midterm elections. The latest news shows that current geopolitical expectations have somewhat eased, with expectations significantly rising for a recovery in Saudi exports and U.S.-Iran contact during the UN General Assembly.