
Here's the latest sign that traders are pessimistic about commodity companies
Olam, Noble Group among top 5 securities on loan.
According to IG Markets, Olam appears on the list of top five securities on loan by value under the SGX’s Share Borrowing and Lending programme based on a recent report from the exchange.
"Noble Group, another commodity giant on the STI, also appears on the list, indicating that local traders may not be too optimistic about the outlook of commodity supply chain companies," it said.
In the past trading session, Olam lost another 5.3% of its value while the STI posted a strong performance, rising 0.5% to end the day at 3075.9, despite manufacturing activity shrinking for a fifth consecutive month.
"It may seem like a ceasefire on the news front today with no new exchange of words between Olam and short seller Muddy Waters. However, this is the calm before the storm, with a long, drawn-out battle with both parties potentially going down the court route with their allegations and counter-allegations," said IG Markets.