ZIM and Maersk Shares Sink, Giving Back Monday's Gains as U.S. Longshoremen Strike
$ZIM Integrated Shipping (ZIM.US)$ fell nearly 10% Tuesday, giving back all of a rally on Monday that took the transportation giant to a nearly two-year high on speculation that the firm is well-positioned to survive the massive U.S. longshoremen's strike.
ZIM sank as much as 8.8% to a $23.40 session low early Tuesday, completely erasing an 8.1% gain Monday that took the stock to a $26.20 intraday high – its best level since November 2022.
ZIM had rallied on a report from Jefferies that predicted the shipping giant will benefit from the longshoremen's strike that kicked off Tuesday. The walk-out shut down ports across much of the United States.
Jefferies wrote in a note Monday that ZIM is the "best levered" shipping firm to survive the strike, according to published reports.
"We remain favorable on the container equities [like ZIM and $A.P. Moller - Maersk A/S Unsponsored ADR (AMKBY.US)$] due to the tighter market balance brought on by the Red Sea diversions and the increasing likelihood that this will continue well beyond 2024" published reports quoted Jefferies analysts as writing.
Like ZIM, Maersk rallied Monday -- but gave back all of its gains Tuesday to fall as much as 6.3% to a $7.82 intraday low.
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