Shipping Stocks Are Surging

Shipping stocks are having a big day.

Frontline is up 13.5%.

Nordic American Tankers Limited has climbed 6.4%.

DryShips Inc. is 5.7% higher.

The reason: the Baltic Dry index climbed more than 9% Thursday.

“Despite abysmal earnings levels for dry bulks, asset values have improved — leading us to take the view that ‘something has got to give’ — either rates come up or asset values will fall back down,” Arctic Securities analyst Erik Nikolai Stavseth said in a recent note according to Reuters. “We think the former is the case and maintain our take that there will be an improvement in freight earnings in H2/13 to support the rise in asset values.”

Here’s the chart for Frontline:

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.