ZIM Integrated Shipping Services Ltd. (ZIM) saw a significant rise in its stock price on December 2, 2024, closing at $19.81, up 7.72% from the previous close of $18.39. The stock opened at $19.45 and reached an intraday high of $20.86, driven by a surge in trading volume to 12,230,540 shares, nearly 190% of its average daily volume. The primary catalyst for this upward movement was the anticipation of the dividend ex-date, which prompted increased buying activity as investors sought to secure their eligibility for the upcoming dividend payout. This typical market behavior was further supported by ZIM's recent update on withholding tax procedures related to the dividend distributions scheduled for December 9, 2024, which may offer certain shareholders a reduced Israeli withholding tax rate.
The stock's performance was also buoyed by ZIM's announcement of a new long-term operational cooperation with Mediterranean Shipping Company (MSC), set to launch in February 2025. This partnership aims to enhance ZIM's service quality and operational efficiencies, particularly on the Asia to US East Coast trade, and aligns with the company's focus on decarbonization through the use of LNG-powered vessels.