So well-documented is the notion that a huge number of newly built dry-bulk ships will be entering the market next year and beyond, leading to a potential glut, that market participants discounted this as a reason for the steep two-day drop in shipping stocks.
One of the leading dry-bulk decliners Wednesday was
Genco Shipping & Trading
, whose shares lost 5.7% to $19.60. The company reported its third quarter after Wednesday's market close, saying it earned $1.10 a share, exceeding analysts' profit targets by 9 cents.
(DRYS - Get Report)
stock, meanwhile, also lost 5.7% during the session after retreating 7.6% on Tuesday. The company, the first Greek dry bulk concern to go public in 2005 and the first to report third-quarter results this earnings season on Monday, surpassed expectations and reported a "clean quarter," in the words of one shipping-stock investor. The stock finished Wednesday at $6.01.
Elsewhere, shares of
(DSX - Get Report)
gave up 5.5%;
(NM - Get Report)
(PRGN - Get Report)
retreated nearly 6.7%; and
declined by 7%.
The steepest drops were experienced by the smaller-cap names. Shares of
(FREE - Get Report)
, an operator of smaller handymax and handysize vessels that transports a lot of grain, sank nearly 11% to $1.33.
shares broke a buck, falling nearly 9% to 89 cents, while
Star Bulk Carriers
(SBLK - Get Report)
lost 7.7% to $3.01 and
, fell nearly 8% on the day.
-- Written by Scott Eden in New York
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NEW YORK (
) -- Advertising giant Interpublic could only talk psychology when gazing into the near-term future.