Hot stock: Interest in NOL may continue on new development from West Coast ports
SHARES of Neptune Orient Lines (NOL), which surged to a high of S$1.065 on Wednesday morning following news of its plans to divest its logistics business, have since stabilised.
As at 2.45pm on Monday, NOL was trading at S$1.02, down some 0.49 per cent from Wednesday's closing price.
But NOL may be in play this week again due to positive news related to its core liner business, CMC Markets analyst Nicholas Teo said.
"Late Friday, it was announced that the US West Coast dock workers and their employers reached a five-year contract deal. This averted a shutdown of 29 ports that could have cost the US economy and NOL heavily," Mr Teo said.
In its recent earnings release, NOL had blamed the industrial slowdown and subsequent congestion in the West Coast ports - a major contributing segment of NOL's container liner business - as a key reason for the slide in both quarterly and annual revenues for the company.
"This new development from the West Coast Ports could offer traders a reason to bid up the stock again," Mr Teo noted.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Stocks to watch: MPACT, CapitaLand Ascott Trust, Hotel Properties, OUE Reit, CLCT
Europe: Tech, retail stocks boost Stoxx 600 to one-week high
US: Stocks climb for second straight day
Euro at highest to yen since 2008, markets nervy over Tokyo stepping in
Singapore stocks track Wall Street gains on Tuesday; STI up 1.5%
UBS lifts Chinese stocks to overweight in rare upgrade call