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- Shipping industry may go negative considering current global economic aspects.
- Zim Integrated Shipping Services are paying higher dividends amid declining payments.
- ZIM shares were trading at 23.49 USD at the time of writing.
Massive Growth in Zim Assets
Amid rising economic risks and Russia’s invasion of Ukraine, industries in the global markets are constantly witnessing a downfall. But some companies in the shipping sector appear unaffected due to the turmoil. Zim Integrated Shipping Services (ZIM) is among such organizations. Though Zim stock price is struggling to gain its all time high and declining payments, it is still paying higher dividends than the most.
The company’s assets grew by over 300% in 2021 to 9.84 Billion from 2.82 Billion USD in 2020. The Israel-based organization was officially listed on the New York Stock Exchange (NYSE) last year. The firm has elevated their dividend earnings from 20% to 30% according to their quarterly reports issued in August 2022.
Source: Google Finance
Zim Stock Price Returns to Their NYSE Origins
Zim stocks have returned to their initial share price when the company made its debut on NYSE in 2021. They traded at 15 USD per share in February 2021, and made its way to 50 USD levels in June 2021. The price fluctuation in July 2021 dropped the value to 35 USD but the bulls took control and pushed to 60 USD mark.
The raging bulls showed up during March 2022 where Zim stock prices tasted their all time high of 91 USD, highest levels in company history. This was after Russia declared war against Ukraine. The war effects became visible in April 2022 when company shares started witnessing a downfall and traded around 48 USD during the month.
Though the chart shows positive signs and touched 70 USD levels in May 2022, but started to slide down the slope to trade around the July 2021 mark. Currently, it appears like the tides are getting normal and it came down to where it all started. At the time of publication, Zim stock price was exchanging hands at 23.49 USD, a 74% loss since its ATH.
Source: Zim Stock Price at TradingView
Experts at TradingView forecast Zim stock price to grow at an average of 62% to reach 38 USD next year. Similarly, they believe that the value may rise to 80 USD levels, a whopping 240% gain next year.
According to a research by Moody’s, a financial research company, the global shipping industry will go negative in future considering the current global economic aspects. This includes the rising economic risks, slower growth in large European nations, increasing inflation and electricity cost and more. Over 80% of the EU’s exports and imports relies upon shipping services.
Russia’s anarchist approach towards Ukraine has already redirected crude and oil trade flow globally. This has raised the demand for large tankers, including Aframax and Suezmax, as several EU nations source crude and oil from abroad.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
