Shares in Norwegian tanker group Frontline jumped 4.8 percent on the back of strong first quarter results and renewed confidence in the tanker market
, analysts said. Frontline shares were up 9.0 Norwegian crowns ($0.990) amid heavy trading, after hitting a year high of 198 earlier in the session. The share had a year low on February 1 at 102.50 crowns. The total index at the Oslo bourse was up 1.3 percent.
"Firstly, the increase is driven first by the first-quarter results Frontline presented yesterday, which were very good and above expectations," Ole Richard Hammer
, an analyst with Pareto
, said. "Secondly, we are at the threshold of summer, which is usually a good period in the tanker market and adds to the confidence investors have in Frontline." he said.
Frontline also said on Thursday it had won 51 percent control over its small rival Mosvold Shipping after raising its takeover bid. "The Mosvold takeover, does not affect the Frontline share price very much, but it's a good example that Frontline is a company that get things done," Hammer said. - (Reuters)