We recently compiled a list of the These 10 Firms Were Last Week’s Worst Performers. In this article, we are going to take a look at where ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stands against the other stocks.
Wall Street’s main indices finished firmer on Friday, with all main indices settling in the green territory ahead of President-elect Donald Trump’s return to the White House.
Week-on-week, the Dow eked out a 3.81-percent gain, the S&P rallied 3.79 percent, while the Nasdaq increased by 3.84 percent.
Ten companies from diverse sectors, however, ended Friday weaker, posting notable declines versus the week prior. In this article, let’s look at which firms suffered a bloodbath and the reasons that dragged their performance.
For this week’s list, we only focused on companies with a market capitalization of at least $2 billion and a minimum trading volume of $5 million.
A fleet of vessels docking at a busy harbor, signaling the company’s presence in global marine shipping.
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
ZIM Integrated Shipping Services Ltd. saw its share prices drop by 13 percent to close at $16.6 on Friday versus the $19.09 finish week-on-week as investors sold off positions following a ceasefire between Israel and Hamas.
Shipping companies such as ZIM have long been benefiting from the geopolitical tensions between Israel and Palestine since they were forced to take the longer route around South Africa instead of using the Suez Canal. The longer route has led to higher shipping rates due to the added time and fuel costs.
With the ceasefire now in place, expectations brewed that the stabilization in the region would now result in reduced costs, thereby forcing shipping rates to go down as well, thus lowering profits for the company.
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This article is originally published at Insider Monkey.
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