NOL still a regional laggard despite recent price rally

Can it maintain its upward momentum?

Neptune Orient Lines enjoyed a 7% share price gain in yesterday’s trade, but the SGX’s shipping giant remains a laggard compared to its regional peers.

Data from CMC Markets show that NOL’s share price trails those of Hong Kong-listed Orient Overseas and Japan-listed Mitsui OSK Lines.

According to Nicholas Teo, NOL’s rally has been fuelled by positive newsflows in the container shipping industry and the sale of APL Logistics.

He noted that the stock looks to have completed a period of consolidation, with the possibility of a resumption of its upward track.

“If the next resistance level of S$1.05 can be broken, a test of the 2014 high of S$1.135 may be next on the cards. However, the stock needs first to hold above this break-out level of S$0.98. Should this level fail to hold, we may also see it ease back down to S$0.935,” Teo stated.