Stock Hold Call: Samudera Shipping fair value of 0.42 by Philips Securities!

Phillip Securities said it has given Samudera Shipping Line a "hold" rating and a fair value of 0.42 sgd in light of falling freight rates and excess capacity in the shipping industry. Samudera serves Asia, operating mainly as a feeder line. "The industry's bleak outlook and the lack of significant earnings growth catalysts will hamper any upward price movement," Phillip said in a note to clients. "The feeder service business is subject to a dual threat of softer freight rates and rising bunker prices. We expect these two trends to continue for the rest of the year. Rates will not improve as supply outpaces demand through to the next year," the note said. Phillip said higher fuel costs may dim this outlook by eroding margins. At 10.50 am, Samudera was down 0.005 sgd at 0.38, on volume of 209,000 shares.