Pacific Basin Shipping Ltd, Hong Kong's largest operator of dry-bulk vessels, gained the most in almost a month after posting a better than expected first-half profit on China's rising demand for coal and iron ore.
The shipping line's shares climbed as much as 5.9 per cent in Hong Kong trading yesterday.
Pacific Basin doubled first-half profit after demand for commodities in China and India allowed it to charge 83 per cent more for chartering out its largest bulk vessels. The company also said it was confident about rates for the next 12 months because of stable demand and unexpected order delays.
'We knew profit would be good, but we didn't think it would be that good,' said Gideon Lo, an analyst with DBS Vickers here. 'The fourth quarter is also going to see a pick-up' after the Beijing Olympics, he added.
China, the largest customer for bulk-shipping lines, has closed steel mill, cement plants and other factories around Beijing to help curb pollution during the Olympics. That has caused the Baltic Dry Index, a measure of commodity shipping rates, to fall for 17 straight days, the longest losing streak in almost three years.
Still, delays in the delivery of new ships is tempering declines, Pacific Basin chief executive officer Richard Hext said in an interview with Bloomberg Television yesterday.
'We see continuous strong demand for coal in China.' Shipping lines have postponed or cancelled orders for new vessels because of difficulties in finding credit and because of a shortage of components, Mr Hext said.
The shipping line's shares climbed as much as 5.9 per cent in Hong Kong trading yesterday.
Pacific Basin doubled first-half profit after demand for commodities in China and India allowed it to charge 83 per cent more for chartering out its largest bulk vessels. The company also said it was confident about rates for the next 12 months because of stable demand and unexpected order delays.
'We knew profit would be good, but we didn't think it would be that good,' said Gideon Lo, an analyst with DBS Vickers here. 'The fourth quarter is also going to see a pick-up' after the Beijing Olympics, he added.
China, the largest customer for bulk-shipping lines, has closed steel mill, cement plants and other factories around Beijing to help curb pollution during the Olympics. That has caused the Baltic Dry Index, a measure of commodity shipping rates, to fall for 17 straight days, the longest losing streak in almost three years.
Still, delays in the delivery of new ships is tempering declines, Pacific Basin chief executive officer Richard Hext said in an interview with Bloomberg Television yesterday.
'We see continuous strong demand for coal in China.' Shipping lines have postponed or cancelled orders for new vessels because of difficulties in finding credit and because of a shortage of components, Mr Hext said.