SINGAOORE (BLOOMBERG) - Shares of Noble Group, the Singapore-listed commodities trader facing criticism of its accounting methods, rose for the third straight day on Friday (Aug 21), the longest rally since June.
Noble surged as much as 8.1 per cent and was trading up 3.5 per cent at 44.5 cents as of 10:24 am. It closed up 1.2 per cent on Thursday and 2.4 per cent on Wednesday.
The stock is still trading 63 per cent lower since mid- February, when Iceberg Research posted its first critical report of the company.
The Hong Kong-based firm is looking at shifting toward use of secured finance, which could boost liquidity and reassure the market, according to four people with knowledge of the matter. Noble is in talks with its banks on the move, which may also relegate existing bondholders and lenders in potential claims.
"It's a good sign that the stock is showing some resilience in a day when global equities are slumping," said Bernard Aw, a market strategist at IG Asia Pte. in Singapore. "It helps that the company has been increasing their communication to shareholders and the public, while at the same time pursuing measures to improve their credit lines."
Noble held a five-hour investor meeting on Monday in Singapore and made a 135-page presentation of the company, revealing greater detail of their business. The company also pledged to boost its annual operating income from its main assets to more than US$2 billion within five years from US$1.49 billion in 2014.