Diana Containerships Inc (NASDAQ: DCIX) is having a great day in the market, like many in the shipping sector. However, also like many in the sector, the company hasn’t issued any news. Nonetheless, there is a good reason for the gains. Today, we’ll talk about:
- Why DCIX is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why DCIX Is Up
As mentioned above, Diana Containerships is having a strong day in the market today, but the company hasn’t issued any news. There have been no press releases or SEC filings. So, what’s going on here?
Well, first and foremost, it’s not just DCIX moving today. The entire shipping sector from TOPS to ESEA seems to be headed for the top. With no news being released by any of these companies, we can see that the gains are more sector related than company related.
The gains are ultimately the result of two catalysts:
- Trade Talks – Trade talks are coming to a conclusion between the United States and China. With mounting trade tensions, there have been several concerns. However, leading into the most recent talks, there was quite a bit of positive discussion with regard to the topic. For the shipping sector, this is great news. After all, a positive trade outcome will keep product flowing between the two countries, having a direct relation to the growth in the shipping sector.
- Oil Prices – Another factor that seems to be playing a role here is oil prices. At the moment, oil is trading very low and has been falling. For shippers, fuel costs are one of the highest costs that they have to take into account. Considering the lowering oil prices, shippers have the opportunity to turn more of their revenue into a profit.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves in the market. In the case of Diana Containerships, the company hasn’t released any news of their own. Nonetheless, improving conditions in the sector in which the company works seems to be leading to strong gains sector wide. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (11:29), DCIX is trading at $0.87 per share after a gain of $0.07 per share or 8.76% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on DCIX. In particular, we’re interested in following the shipping sector as a whole as conditions seem to be improving. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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