STX Pan Ocean (V33.SG) down 5.9% at 2-month low of S$3.06, hurt by 2.7% fall in BDI, overall market weakness. But rebound off morning low of S$2.95 suggests bargain hunting or short-covering at work, although unlikely to help push share price into positive territory. On charts, technical indicators looking bearish, with Direction Momentum Indicator on ADX recently triggering Sell signal, while RSI still heading south but yet to reach oversold region. Near-term support at S$2.82, based on 61.8% retracement of rise to May high of S$4.00 from Jan. 22 low of S$2.09.
STOCK CALL: Credit Suisse keeps STX Pan Ocean (V33.SG) at Neutral with S$3.75 target price. Says lead indicator Baltic Dry Index (BDI) has only fallen back slightly so far but tips index to head lower in near-term due to seasonal weakness, reduced iron ore cargo as a result of China's stockpiling. Says shares in dry bulk shippers have corrected as worries priced in, but could still go lower; "we think there is still downside share price risk in the short-term on BDI weakness and thus it is too early to pick them up." Share down 6.2% at S$3.05 vs FTSE ST All Share down 1.7%. Korean-listed share (028670.SE) closed down 7.3% at KRW2,280.
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