Noble shares open up over 8%

Noble shares were the most heavily traded with 128 million shares having changed hands.
Noble shares were the most heavily traded with 128 million shares having changed hands.PHOTO: REUTERS

SINGAPORE - Shares of Singapore-listed Noble Group jumped over 8 per cent on Tuesday morning, the day after the embattled commodities trader announced the findings of an independent review of its accounting methods and its second-quarter results.

Before the Singapore market opened on Tuesday, Bloomberg News reported that Noble had asked deal maker Michael Klein to review options for the company, including raising secure financing from banks or selling a stake in the company. Mr Klein, a former investment banking chairman at Citigroup, started advising the company in recent weeks, Bloomberg said.

Noble shares were trading 4.5 cents or 7.8 per cent higher at 62.5 cents at 9:45am. The stock was the most heavily traded with 128 million shares having changed hands.

Noble said on Monday that PricewaterhouseCoopers had found that its method of valuing contracts conformed both to industry standards and accounting rules.

The review followed months of criticism of the company's accounting that saw Noble's share price halved since mid-February.

Noble also announced on Monday that its second-quarter profit fell 4.5 per cent to US$63 million, from US$66 million a year earlier, amid challenging business conditions.