Diana Shipping And Genco Shipping To Go Up: CNBC (DSX, GNK)
March 10, 2010 7:18 AM
The Baltic Dry Shipping Index has gained 17 percent in the last five trading days. The index is used for estimating global demand for dry commodities.
In an interview with CNBC, Amrita Sen, commodity analyst at Barclays Capital, said,“In 2009, we had about 450, and this year, the order book is expecting to see well-over 1,400 ships. It will reflect not changes in the demand because supply-overhang is going to keep a lid on rates.” However, she said that the port congestion measure is a more accurate guide than the Baltic Dry Index.
Doug Mavrinac, Maritime Group research head at Jefferies, agreed with her, and said that the index has never been the perfect economic gauge. Mavrinac picked Diana Shipping (NYSE: DSX), and Genco Shipping (NYSE: GNK) as his favorite stocks.
