Houthi rebels: After attacks in the Red Sea: shipping company shares soar

In the case of ZIM, it is also worth considering a short squeeze, i.e. pushing out the short sellers who are starting to dream due to the rising price. Short sellers borrow stocks from the market and then sell them to speculate on falling prices. If the gamble works, they buy the shares back later at a cheaper price and, after returning the papers to the owner, keep the difference between the ideally higher sale price and the lower buyback price for themselves. However, there is a high risk of loss because if the stock rises contrary to the short sellers’ expectations, the whole situation will turn against them. Since the share price can theoretically continue to rise, the short seller runs the risk of having to buy the share back at a very high price in order to return it to the owner. In the case of ZIM, around 24 percent of the shares are sold short. So the pressure on short sellers to buy back soon is increasing.