US maritime shares are poised to see a mixed week that is seeing dry-bulk shares lead both the decliners and the gainers columns.
Falling shipping, offshore vessel and cruise stocks tracked by TradeWinds slightly outnumber gaining names this week compared to prices quoted at the close of New York trading last Friday.
But the Dow Jones US Marine Transportation Index ended Friday at 219.93 points, which is a 1.2% improvement on last week's close.
Genco and Globus decline
Bulker owner Globus Maritime shed 20.8% so far this week to hit $4.99 at today's closing bell, while larger New York rival Genco Shipping & Trading lost 16.3%, bringing it to $6.99 per share.
But Angeliki Frangou-led bulker owner Navios Maritime Holdings shares moved sharply in the opposite direction, rising 21.3% to $1.54 after receiving a boost from an arbitration ruling that declared that a key contract with Vale is valid. The Brazilian miner had tried to back out of the iron ore terminal deal.
"It's a Christmas miracle," said Stifel analyst Benjamin Nolan of the development. "This in our view is the best possible outcome for [Navios], and materially improves the outlook for their business."
Diana Shipping also saw significant stock price gains in a week that it peppered with announcements of orderbook developments. The company's shares pulled back to $3.48 today after seeing stronger gains, ending the week with a 10.6% improvement compared to last Friday's close.
As TradeWinds reported earlier this week, the company revealed that it pocketed a $9.4m refund from a cancelled newbuilding and secured a $2m price cut on another order.
Deutsche Bank analyst Amit Mehrotra tells TradeWinds that there are not any fundamentals that explain this week's rise for Diana's stock, and the company still in one of the worst positions among US-listed bulker owners he covers.
But he said those challenges follow years of Diana being one of the most prudent owners in the sector, and investors are starting to take new interest in shipping.
"People are looking at perceived high-quality names in the industry and buying them," Mehrotra said.
Tidewater led slumping offshore vessel shares this week after investors smarted at a decision to pay bonuses to retain key executives during restructuring efforts, including a potential Chapter 11 filing.
Tidewater down 13.9%
The New Orleans company's shares dropped to end Friday at $3.54, a 13.9% slump on last week.
Nordic American Offshore shed 11.1% to $2.80 this week.
Products tanker shares posted gains this week, with Pyxis Tankers improving by 10.7% and Ardmore Shipping jumping 7.5%.
Crude tanker stocks were divided on Wall Street this week. Navios Maritime Acquisition jumped 7.6% and Euronav moved upward by 6.7% so far, but Gener8 Maritime lost 3.3% and Frontline 4%.
