100% mugwort in 3 months HMM’s stock price running on the blocked Suez Canal

HMM container ship [사진 제공 = 해수부]

The stock price of HMM (formerly Hyundai Merchant Marine) is declining. The stock price, which had stayed in the 15,000 won range at the beginning of this year, recently surpassed 30,000 won, changing the reported 52-week price. Investor sentiment is stimulated by the expectation of rising shipping freight rates due to the logistics turmoil due to a container ship aground accident at the Suez Canal.

According to the Korea Exchange on the 26th, HMM finished trading at 34,150 won, up 15.96% (4700 won) compared to the previous day. The stock price, which started at 16550 won earlier this year, soared 106.34% in three months.

Earlier, on the 24th, the Suez Canal, the most important passage connecting Asia and Europe, was blocked by a very large container ship aground. It is a 20,000 TEU-class (TEU is one 6m long container) EVER GIVEN of Taiwan shipping company Evergreen. It is believed that the hull left the course due to a sudden strong wind, and crashed into the bottom, causing the ship to be stranded. The shipping industry expects it will take some time to recover the situation right away. As the Suez Canal accounted for 12% of global trade and 30% of container traffic last year, this accident is expected to inevitably contribute to the supply and demand of global maritime logistics.

“The Suez Canal is an important route used by more than 50 ships a day on average last year,” said Choi Woon, a researcher at Korea Investment & Securities. “The global shipping market has been short of supply for nearly half a year since the novel coronavirus infection (Corona 19). The market situation is very sensitive to supply uncertainty, so if this situation is not resolved in the short term, freight rates will rise again.”

In the end, it literally blocked the road to Europe, which means that it could cause a bigger logistics disruption than it is now.

After the accident, foreigners and individuals concentrated on HMM purchases. In particular, foreigners bought 26.1 billion won worth of stock on the 26th alone, becoming the leading contributor to the stock price.

Researcher Choi said, “As the stock price of shipping stocks surged rapidly, it was a time to start worrying about the short-term supply and demand burden and exhaustion of momentum, but it will not be too late to change the investment decision after watching the process of solving the Suez Canal problem.” Kept.

NH Investment & Securities researcher Jeong Yeon-seung said, “If Suez operation is suspended for a long time, freight rates may increase due to the lack of container ships.”

There may be effects of the Suez Canal in the short term, but there are also opinions that it should be observed in the long run.

Yang Ji-hwan, a researcher at Daishin Securities, stressed that “the temporary adjustment of container freight rates is natural, so it is not a level of concern.” Rather, the key to HMM’s container performance is ▲ continued increase in the proportion of online purchases by US consumers ▲ easing of the corona pandemic ▲ increasing volume of goods due to economic recovery

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