Chart of the Day: Big three shipyard operators' average returns hit 6.2%

Rising crude oil prices helped them bounce back in their stock performance.

This chart from the Singapore Exchange (SGX) shows that the top three biggest shipyard operators in the citystate saw average returns of 6.2% YTD in January.

Yangzijiang Shipbuilding topped the list as its total return YTD reached 8%. Meanwhile, Sembcorp Marine and Keppel saw YTD returns hit 5.8% and 4.9%, respectively.

“The share prices of the three largest shipyard operators have also recovered in tandem with higher oil prices – rebounding an average of 26.5% from their 52-week lows,” SGX explained. “Keppel Corp and Sembcorp Marine have recovered 9.3% and 9.4% respectively from their 12-month troughs, whilst Yangzijiang Shipbuilding has registered a 60.7% price gain from its 52-week low.”

SGX noted that offshore and marine stocks, including shipyard operators, are seen as a proxy to higher crude prices. In the past years however, said stocks have been battling with the slump in oil prices, cutbacks in exploration and production (E&P) spending, weak charter rates and delayed projects.

“Analysts expect price volatility to continue, due to ongoing trade tensions and concerns over China’s slowing economic growth,” SGX explained.