Friday, March 07, 2008

Baltic Dry Index and Maybulk Again.

On Feb 13th 2008, I blogged the following: Another Update on Baltic Dry Index

What interest me the most was the chart of the BDI then. BDI on that day was at 6712 points. See below:

And on that day, the leading BDI stock in our market, Maybulk, was at 3.98.

So how is BDI doing now?

BDI closed at 8403!

Here is the incredible one month chart of the BDI.

Let's see on Feb 13th, BDI was at 6712. it's now at 8403.

Oh.. it's up only some 1691 points.

And Maybulk now is at 4.02.

Up a mere 4 sen from Feb13th 2008????

Macam Mana Ni?

Rational or Irrational?

Saw this set of commentary.

  • Baltic Freight Rate Gain Supports Commodities Story

    FN Arena News - March 07 2008

    By Chris Shaw

    Having hit a low in late January the Baltic Dry Index, which is an indicator of the cost of moving raw materials by sea, has run significantly higher, hitting a level this week up more than 45% from those lows earlier in the year.

    According to TD Securities global strategist Stephen Koukoulas the fall in January was nothing more than a seasonal blip, a view supported by the fact the index is now up around 300% from its lows of 2006 and around 860% from its lows of 2001.

    This has important implications for commodity prices as the index is seen as a reasonable proxy for commodities demand and the latest gains in the index suggest there has been little sign of any slowdown in the global demand for commodities and by extension, global economic activity.

    This implies global growth rates should remain at solid levels despite the recent volatility in financial markets, which Koukoulas suggests will also mean the current inflationary pressures evident in a number of economies around the world are unlikely to go away any time soon. ( )