
Investors cautioned against investing heavily in Singapore shipping firms
Despite improving outlooks and economic climate.
"With significant operating challenges likely to linger in 2014 and the persistence of a demand-supply cap, we deem it too premature to call for an inflection point for the sector," assesses OCBC Investment Research.
"Although the overall economic climate should improve, capacity overhang and lack of industry action should see liners suffer from lower freight rates," it added.
This convinced the research firm to place an Underweight investment rating on the shipping sector, notably keeping a Sell recommendation on Neptune Orient Lines.