Movement Alert|COSCO Shipping Energy Falls 3.74% in Regular Trading, Hormuz Strait Evacuation Suspension and Weakening Oil Prices Extend Pullback

Market Focus06-29

On June 29, COSCO Shipping Energy (01138.HK) fell 3.74% in regular trading, trading at HK$15.79/share, with turnover of HK$86.92 million. The stock had previously rallied over 20% on expectations of Hormuz Strait reopening but has been pulling back for multiple consecutive days.

On the news front, a cargo ship was attacked in the Gulf of Oman, prompting the International Maritime Organization to suspend its evacuation operations for vessels stranded in the Hormuz Strait to reassess whether safety guarantees remain effective. Iran's Revolutionary Guard Navy also issued a statement requiring all ships transiting the strait to coordinate with them, warning that non-compliant vessels would face consequences. Market confidence in the pace of full navigation resumption has been shaken.

Meanwhile, Capesize vessel rates continue to weaken amid seasonally softer industrial cargo demand and ample short-term capacity. Declining oil prices further undermine shipping companies' ability to raise fuel surcharges, suppressing freight rate expectations. Oriental Securities noted that strait restoration to normal levels will not happen overnight, with key factors including transit procedures, safety, and fees still unresolved, and compliant shipowners maintaining a cautious stance.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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