SEAPORT & LOGISTICS
[%Axym%] [%dAYw%] [%QelE%] [%HPWi%]
Research by Kenanga
Neutral

“Red Sea Conflict Disrupts Asia-Europe Trade”

We maintain NEUTRAL on the sector. The prolonged war in the Middle East with no immediate sign of the Red Sea conflict de-escalating is weighing down on the Asia-Europe trade. The World Trade Organisation (WTO) said in end-Feb 2024 that it is cutting its current projection of 3.3% growth in global merchandise trade volume in CY24, also quoting lower water levels in Panama Canal due to an extreme drought, which is disrupting the movement of shipping liners. We also acknowledge that global trade will have to navigate stricter regulations on carbon emissions. However, we continue to see a bright spot in the domestic logistics sector, which is a beneficiary of the booming e-commerce. We do not have any top pick for the sector. 

Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz 
[%XObl%]

SEAPORT & LOGISTICS
$KLSE-WPRTS $KLSE-BIPORT $KLSE-POS $KLSE-SWIFT
Research by Kenanga
Neutral

“Red Sea Conflict Disrupts Asia-Europe Trade”

We maintain NEUTRAL on the sector. The prolonged war in the Middle East with no immediate sign of the Red Sea conflict de-escalating is weighing down on the Asia-Europe trade. The World Trade Organisation (WTO) said in end-Feb 2024 that it is cutting its current projection of 3.3% growth in global merchandise trade volume in CY24, also quoting lower water levels in Panama Canal due to an extreme drought, which is disrupting the movement of shipping liners. We also acknowledge that global trade will have to navigate stricter regulations on carbon emissions. However, we continue to see a bright spot in the domestic logistics sector, which is a beneficiary of the booming e-commerce. We do not have any top pick for the sector. 

Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz 
wanmustaqim@kenanga.com.my

$BIPORT / 5032 (BINTULU PORT HOLDINGS BERHAD)

$WPRTS / 5246 (WESTPORTS HOLDINGS BERHAD)