THE surge in the shares of Malaysian Bulk Carriers Bhd (Maybulk) in recent weeks reflects improving sentiment towards commodity prices although industry fundamentals still have some catching up to do, say analysts.
While improving prices are certainly a plus, the company’s fate is tied to the demand for the dry bulk commodities transported by its vessels. An oversupply of bulk carriers globally has dampened charter rates, while the global economic growth slowdown looms large over demand for commodities in the coming years.