Trouble In The Suez! Oil Tankers Surge On Egyptian Violence
While all three major U.S. indices took big hits, with the Dow leading the way down losing 2.5% to 11,824 points, a few stocks were spiraling upward on the news that chaos was engulfing the Northern African nation of Egypt. Oil tankers such as Overseas Shipholding Group (NYSE:OSG) gained handsomely on the possibility that the Suez Canal could be forced to shut down. The NASDAQ had fallen 2.5% to 2,687 while the S&P 500 shed 1.8% to 1,276.
Civil unrest in Egypt had already sent a shock wave through different markets. Apart from rocking US indices, Egyptian violence sparked a jump in oil prices during Friday January 28’s trading session (Read Egyptian Civil Strife Sends Oil Close To $100 On Suez Canal Fears).
While most equity-related assets got battered, a select group of stocks, oil shippers, were corking champagne bottles. Apart from Overseas Shipholding, Frontline Ltd. (NYSE:FRO) had a killer day, gaining 7.8% or $1.96 to $27.10.