Shipping stocks were off to the races again in New York Monday after a week in which they outpaced even the broader market indices and their record highs.
Monday's continued momentum once again turned on positive news regarding a vaccine for Covid-19, as this time Moderna released results showing 95% effectiveness in early trials.
Last week it had been Pfizer with a similar revelation, sending both the Dow Jones Industrial Average and the S&P 500 to record highs.
But gains in the broader market last week paled in comparison to those for long-suffering shipping stocks.
"Shipping was a big outperformer," said Jefferies analyst Randy Giveans in reaction to last week's movements, which saw the 30 stocks under his coverage jump an average 9.2% against gains of 2.2% for the S&P 500 and 6% for the Russell 2000.
"Shipping has certainly been under considerable pressure in recent weeks and months, so any positive news – in this case the vaccine developments – will boost shipping stocks more than the broader market. Also, we are starting to see a rotation from momentum-growth into cyclical and value stocks."
While LPG carriers paced last week's gainers with an average 18% gain, no sector gained less than the 7% posted by tankers and LNG names. Containerships added 15% and dry bulk owners 8%.
Greek containership owner Danaos once again led all shares with a 21% surge, continuing its recent revival on both rates and the broader economic outlook.
Danaos was back at it again on Monday, soaring 19% to $13.45.
But it had plenty of company, with tanker names like Frontline up 7%, Tsakos Energy Navigation and Teekay Tankers adding 6% and International Seaways 5%.
Dry bulk shared in the party with Scorpio Bulkers and Safe Bulkers both up 4% and Star Bulk Carriers lifting 3%.
Cruise operators continued to share in the recovery, with stock of Carnival Corp up more than 9%, ahead of Royal Caribbean Cruises and Norwegian Cruise Line both gaining 7%.
The Dow soared to a record high of 29,993 earlier Monday on the Moderna news.
