Shares in Norwegian tanker group Frontline (FRO)
fell 5.3 percent on weak tanker rates, delays to scrapping of old tankers and a negative media
and broker report, traders said. Frontline (FRO)
shares were down 9.0 Norwegian crowns ($0.996) at 161 at 0844 GMT after tumbling from a recent high of 190. The total share index of the Oslo bourse was down 0.7 percent. "Frontline headed for 100" crowns, the financial daily Finansavisen said in a front page headline, adding "the tanker boom is over."
A meeting of the International Maritime Organization (IMO) last week agreed to eliminate all single-hulled tankers by 2021, later than a widely anticipated date of 2015. "It will take longer to scrap old tankers under the IMO rules," First Securities analyst Jarle Sjo said. "We've been negative to Frontline for a long time -- freight rates are dropping significantly." - (Reuters)