Cosco Shipping Leads the Pack with Strong YTD Gains as Oil Prices Remain Low

Transportation stocks have experienced significant growth in early 2024, buoyed by favorable market conditions, particularly as Brent Crude Oil prices remained below US$80 per barrel since November 2023. This momentum is expected to continue throughout the year, according to a market update from the Singapore Exchange (SGX) released on January 15, 2024.

The World Trade Organization (WTO) has predicted a 3.3% increase in global merchandise trade volume for 2024, contributing to the optimistic outlook for transportation stocks. Additionally, the International Air Transport Association (IATA) expects passenger demand in the Asia-Pacific region to return to pre-Covid levels by the end of 2024, further boosting investor confidence.

Among the top 10 most-traded transportation stocks on the Singapore Exchange, Cosco Shipping International (Singapore), Chasen Holdings, and Samudera Shipping have emerged as the top performers, each showing average gains of 16.6% over the past two weeks. This increase in stock prices comes with higher trading turnover compared to the previous year, reflecting stronger investor interest in the sector.

Cosco Shipping, in particular, has shown the best year-to-date (YTD) returns for 2024, making it a standout among transportation stocks on the SGX. The positive market forecast and low oil prices continue to drive growth expectations for transportation companies throughout the year.