ZIM Integrated ( NYSE:ZIM ) and Star Bulk Carriers ( NASDAQ:SBLK ) stock prices fell heavily this week, continuing a trend that began last week. SBLK shares fell to a low of $24.50 on Tuesday, down 7.6% from their highest point this year.
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Likewise, shares of ZIM Integrated tumbled to $17.65, down more than 25% from their highest level this year. Also other stocks related to maritime transport, such as Maersk, Golden Ocean Group And Costamere, have recently recorded a sharp decline.
Ceasefire between Israel and Hamas
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ZIM and SBLK stock prices have fallen heavily due to the ongoing events in the Middle East, where there are signs of peace between Israel and Hamas. Israel has proposed a six-week ceasefire during which the two sides will release their hostages.
The United States and the United Nations Security Council approved the agreement. It is unclear whether Hamas will accept the deal, which could lead to a reduction in hostilities in the region.
Shipping companies have benefited slightly from ongoing tensions in the region which have pushed costs higher in recent months. The latest data shows that the cost of shipping a 40-foot container increased 12% last week to $4,716. This is a significantly higher figure than at the beginning of the year. In January the index stood at less than $1,200.
ZIM Integrated has benefited from this trend, as evidenced by its most recent financial results. The company said its net profit jumped to $92 million in the first quarter compared to a loss of $58 million in the same period in 2023. Its revenue for the quarter rose by 145 to more than $1.56 billion of dollars. As a result, the company declared a dividend of $28 million.
Star Bulk Carrier has a different business model from ZIM as it focuses on dry goods such as grains and other raw materials. It too benefited from the Middle East crisis as the Baltic Exchange’s main shipping index rose to $1,831 from a year-to-date low of $1,312.
Star Bulk’s net profit in the latest quarter rose to more than $74 million compared to the $45 million it made in the same quarter in 2023. This came as its revenue jumped to $259 million. As a result, the company paid a dividend for the 13th consecutive quarter.
ZIM stock price predictions
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The daily chart shows that ZIM Integrated stock price peaked at $23.78 in May and has now erased some of these gains and is trading at $17.65. It fell below the key support level at $21.6, its swing high in April last year. This collapse is in line with recent Citigroup analysts. The stock also fell below the 38.2% Fibonacci retracement level.
Fortunately, it remains above the 50-day and 100-day exponential moving averages (EMA), which is a positive. Therefore, I suspect the stock will resume the uptrend as buyers attempt to retest the resistance level at $21.6.
Analysis of Star Bulk Carriers stock
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SBLK chart by TradingView
Turning to the daily chart, we see that the SBLK stock price has increased significantly over the past few months. It rose from $14 in September 2022 to over $25 today. It peaked at $26.70 in May and has now retreated as hopes of a ceasefire rise.
SBLK shares remained above their 50-day and 100-day moving averages. It also remained below the crucial support level at $25.6, its swing high in June 2022. Therefore, the stock is likely to recover as buyers target the key resistance point at $25.6.
This article was translated from English with the help of AI tools, and subsequently proofread by a local translator.
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