NOL

NOL is another top volume stock that has been spiking steadily this first week of the year.

At S$1.82 as at the close of today’s first half trading session, the leading global container shipping line gained another 7 cents overnight, continuing its 10.3%-surge from S$1.65 at the end of last year.

Deutsche Bank upgraded the stock to “Buy” yesterday, and raised its 12-month target price to S$2.04 per share.

The analysts, Joe Liew and Sky Hong, are forecasting an operating loss of US$362.9 million for FY2009 but believe that earnings recovery momentum has improved and upped their forecast of FY10 operating profits to US$234.2 million.

The following key industry catalysts were highlighted:
(1) Demand recovery from restocking in US/Europe
(2) Continued freight rate rises especially after the annual Transpacific contract negotiations in May
(3) Newbuild supply coming in below expectations on the back of order cancellations and delivery delays.