Shipping shares followed broader markets into a rally in New York on Tuesday, led by cruise shares that added $2.25bn in total market capitalisation in a single trading session.
Carnival Corp’s shares posted the day’s biggest gains after the cruise giant announced a private offering of some $1.25bn in secured bonds aimed at refinancing existing notes.
The Miami company saw its New York-listed shares surge 11.1% to close the day at $8.08, adding $899m in market capitalisation in the day.
The world’s largest cruise shipowner’s gains were nearly mirrored by its two chief rivals. Shares in Royal Caribbean Group’s shares jumped 7.6% to close the day’s session at $48.52, while Norwegian Cruise Line Holdings’ shares vaulted 8.6% to $14.31.
The jumps came as broader stock markets in New York mounted a second day of rallying share prices, though the gains were rocky as trading whipsawed from gains to losses and back to gains again.
Shares, which rebounded from painful losses a week earlier as market data pointed to the likelihood of further interest rate hikes, were buoyed by better-than-expected corporate earnings and better headlines from the UK government.
In shipping, that translated to a 1.7% improvement in the Dow Jones US Marine Transportation Index, which ended the day at 224.26
Among sectors making gains, product tanker owners moved higher on Tuesday, with Ardmore Shipping surging 5.3% to $12.49.
Bulker shares were also marching higher, with the Breakwave Dry Bulk Shipping Exchange Traded Fund rising 4.1% to $9.19. Connecticut-based Eagle Bulk Shipping led rising dry bulk stocks, jumping 4.7% to $50.80.
Read more
- Carnival offers $1.25bn in bonds as it faces $35bn in Covid-19 debt
- UBS upgrades Norwegian Cruise Line to ‘buy’ as bookings ‘catch up’ to peers
- San Francisco chases Princess Cruise Lines, tug provider after pier damage
- Cruise shares mount two-day plunge amid missed hopes and frail economies
- Carnival further narrows losses as it relaxes Covid-19 rules but still misses estimates
