Getting latest data loading
Home / Blog / blog / Clarkson no longer in top gear

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Clarkson no longer in top gear

Shares in Clarkson have traded as low as 1960p (-36%), as the world’s largest shipbroker warned that both half-year and full year 2018 profits will be “materially below” those of last year on the back of “the challenging environment in shipping and offshore capital markets”. Maritime trade is the life-blood of world economy, so such a dire warning from an influential mover of the world’s goods does not bode well for global growth prospects.

“Lower freight rates within the tanker market”, “a quiet period in sale and purchase activity” and “the fall in the value of the US Dollar” all add to the looming threat that a US-China trade/tariff war could be the least of the world’s economic problems if underlying trade is even weaker than markets believe (Eurozone recovery faltering?).

This bombshell from Clarkson this morning has sunk an otherwise solid share price uptrend, going back to early July, when markets digested Brexit referendum results. It is also in stark contrast to a rather upbeat report just a month ago, announcing a “recovery” for the long-suffering ship hiring sector.

With such a stunning reversal of outlook, is there more bad news for trade on the horizon? While economic growth in China and the recent rally on the commodity markets might have added some much-needed support to the sector, the latest news from Clarkson will do nothing to reassure not just shipping peers, but global markets in general about growth and growth recovery.

The share trade well off their lows, close to their highs of the day. Will they manage to float higher, or sink further by the close?

Artjom Hatsaturjants, Research Analyst, 23 Apr 2018

« Back to Category

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

Comments are closed.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
.