MISC's 1Q2007 net profit down 29% y-o-y

MISC's net profit dropped 29.9% y-o-y to RM522 mil while turnover increased 4.6% to RM2.718 billion (see the Table below). The drop in profitability is attributed to lower freight rates in the container shipping business while the core business of energy shipping is fairly stable. In addition, net profit was also negatively impact by higher bunker expenses due to rising price of fuel from US$260 (RM975) a tonne to US$325 a tonne.










Since my bullish call on August 1, the share price of MISC has gained about 9% to RM8.80, based on yesterday (August 14)'s closing price. The share is in a steep ST uptrend line with support at RM8.60. A break of this uptrend would lead to correction with support seen at RM8.50 and then RM8.00 (see Chart below).

















Chart: MISC's daily chart as at August 14

The latest charts on the movement of freight rates for tankers & bulk carriers, which are appended below, are supportive of my view that the rates have probably bottomed.

















Chart for VLCC/ULCC Markets w/e 11th August 2006

















Chart for Dry Bulk Markets w/e 11th August 2006