Down and falling

Asian shipping stocks suffered again Wednesday with European shares threatening to follow suit after a bleak opening.

Japan’s big three shed around 10% of their market value while bulker players were hit hard in Singapore and in early Oslo trading.

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Mitsui OSK suffered its largest fall since the 11 September attacks in New York, shedding 13% to JPY 622 ($6.21) per share.

NYK sank 9.8% to JPY 497 per share and K Line saw 11% sliced from its share price to close at JPY 457 each.

Yoshihisa Miyamoto, an analyst in Tokyo at Okasan Securities Co, said: “Investors shouldn't buy shipping stocks. All three shipping lines' share prices will be below JPY 500 by the end of the year.”

In Singapore, bulker owner Mercator Lines saw a tenth cut from its market value, dropping to SGD 0.18 ($.012) per share.

STX Pan Ocean shares plunged 14.2% to SGD 1.39 each and Pacific Basin Shipping was down 9.01% to SGD 4.85 per share.

The Asian falls follow heavy losses for US shipping companies Tuesday, with bulker owners again hit hard, TradeWinds reported.

DryShips led the downward charge Tuesday, as its Nasdaq-listed stock shed 17.5% to hit $22.49 a day after the company said it would buy nine capesize bulkers and two drillships. Analysts have given the transaction a lukewarm reception.

Other bulker owners’ shares joined in the plunge on a day that the Baltic Dry Index slipped 70 points, or 2.3%. Diana Shipping’s stock lost 14.3% to reach $15.42, and Seanergy Maritime sliding 11.7% to $6.49.

In Oslo, John Fredriksen’s Golden Ocean lost 11.44% of its value in early Wednesday trading, slipping to NOK 10.45 ($1.68) per share.

Jinhui fared even worse, plunging 12.46% to NOK 15.20 per share shortly after the bell sounded.

The fall cames on the heels of a 24% drop in its Hong Kong shares, a decline which forced the release of an emergency statement saying the company sees no reason behind the heavy losses.

Fredriksen’s Frontline saw its Oslo stock follow its US shares down, dropping nearly 9% to NOK 221 each this morning. Seadrill fell 10.36% to NOK 75.30 per share.

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