The ZIM Integrated (NYSE: ZIM) and Star Bulk Carriers (NASDAQ: SBLK) stock prices have plunged hard this week, continuing a trend that started last week. SBLK shares crashed to a low of $24.5 on Tuesday, down by 7.6% from its highest point this year.
Similarly, ZIM Integrated’s shares crashed to $17.65, down by over 25% from the highest level this year. Other shipping-related stocks like Maersk, Golden Ocean Group, and Costamere have also retreated sharply recently.
Israel and Hamas ceasefire
ZIM and SBLK stock prices have tumbled hard because of the ongoing happenings in the Middle East where there are signs of peace between Israel and Hamas. Israel has proposed a six-week ceasefire where the two sides will release their hostages.
The United States and United Nations Security Council have endorsed the deal. It is unclear whether Hamas will accept the deal, which could lead to reduced hostilities in the region.
Shipping companies have benefited slightly by the ongoing tensions in the region that has pushed costs higher in the past few months. The most recent data shows that the cost of shipping a 40ft container jumped by 12% last week to $4,716. This is a significantly higher figure than where it started the year at. 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 that its net income 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 jumped by 145 to over $1.56 billion. As a result, the company declared a dividend of $28 million.
Star Bulk Carrier has a different business model than ZIM in that it focuses on dry goods like grains and other commodities. It too has benefited from the Middle East crisis as the Baltic Exchange main sea freight index has risen to $1,831 from the year-to-date low of $1,312.
Star Bulk’s net income in the last quarter rose to over $74 million from the $45 million it made in the same quarter in 2023. This happened as its revenues jumped to $259 million. As a result, the company paid a dividend for the 13th straight quarter.
ZIM stock price forecast
The daily chart shows that the ZIM Integrated stock price peaked at $23.78 in May and has now erased some of those gains and is trading at $17.65. It has crashed below the key support level at $21.6, its highest swing in April last year. This crash is in line with the recent Citigroup analysts. The stock has also tumbled 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 thing. Therefore, I suspect that the stock will resume the bullish trend as buyers attempt to retest the resistance level at $21.6.
Star Bulk Carriers stock analysis
Turning to the daily chart, we see that the SBLK share price has jumped sharply in the past few months. It has soared from $14 in September 2022 to over $25 today. It peaked at $26.70 in May and has now pulled back as hopes of a ceasefire rise.
SBLK shares have remained above the 50-day and 100-day moving averages. It has also remained below the crucial support level at $25.6, its highest swing in June 2022. Therefore, the stock will likely bounce back as buyers target the key resistance point at $25.6.
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