Shares of Singapore-listed Chinese shipbuilder Cosco Corp fell as much as 3.9 per cent on Monday ahead of its earnings announcement amid concerns that orders for its dry bulk carriers will be hurt by slowing global trade.
At 0232 GMT, Cosco shares were 3.4 per cent lower at S$1.72 with over 26.2 million shares changing hands. This was 1.7 times its average daily turnover since the start of the year.
'The Baltic rates have been dropping, which will hurt COSCO to some extent as it charters a fleet of dry bulks, on top of building them,' said a local trader.
The Baltic Dry Index, which tracks rates to ship dry commodities, fell to its lowest level in three months as slow freight business and growing vessel supply took their toll.
Cosco will report its earnings for the three months ended June later on Monday after trading hours.
'Prospects for the shipping industry are looking dim, and with China tightening credit, the availability to get financing for building ships would be tighter as well,' said another dealer.
At 0232 GMT, Cosco shares were 3.4 per cent lower at S$1.72 with over 26.2 million shares changing hands. This was 1.7 times its average daily turnover since the start of the year.
The Baltic Dry Index, which tracks rates to ship dry commodities, fell to its lowest level in three months as slow freight business and growing vessel supply took their toll.
Cosco will report its earnings for the three months ended June later on Monday after trading hours.
'Prospects for the shipping industry are looking dim, and with China tightening credit, the availability to get financing for building ships would be tighter as well,' said another dealer.
