Lehman Downgrades STX Pan Ocean To Underweight

Dow Jones] STOCK CALL: Lehman Brothers downgrades STX Pan Ocean (V33.SG) to Underweight from Equalweight, citing limited upside to reduced target price of S$3.10 vs S$4.00 previously. New target, based on sum-of-parts valuation, assumes fleet value multiple of 1.3X vs 1.5X earlier. Says larger-than-expected supply imbalance in dry bulk shipping industry likely to drag down sector-wide freight rates, earnings from 2009, hence hurting STX. Expects share price to remain volatile in near term due to seasonally weak BDI, with upside expected during seasonal end-3Q BDI bounce. Stock off 0.8% at S$3.64. Korean listing (028670.SE) closed down 0.6% at KRW2,680