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: