STX Pan Ocean's Shares Rise on First Day of Trading in Seoul

Sept. 21 (Bloomberg) -- STX Pan Ocean Co., South Korea's largest bulk-shipping line, rose on its Seoul trading debut after raising 590.1 billion won ($642 million) in the biggest stock sale by an operator of coal and iron ore vessels. The company rose as much as 9.9 percent to 1,890 won, and traded at 1,850 won at 9:08 a.m. It sold shares at 1,720 won apiece. STX Pan Ocean, which has been listed in Singapore since July 2005, plans to spend about $800 million on 16 vessels this year. Pacific Basin Shipping Ltd. and other dry-bulk lines are also expanding their fleets as China's booming demand for raw materials has helped cause cargo fees to double in the past year. ``With firm bulk-shipping rates and healthy growth in other businesses, I think STX Pan Ocean will show sustainable growth in its earnings,'' said Ryu Je Hyun, an analyst at Mirae Asset Securities Co. He rates STX Pan Ocean ``buy''. The shipping line's Singapore stock closed 4.6 percent higher yesterday at S$2.95. The Baltic Dry Index, a measure of commodity-shipping costs, rose 2.3 percent to 8,619 yesterday.