Noble Group Rally Extends to Three Days, Most Since June

Updated on

The stock of Noble Group Ltd., the commodities trader facing criticism of its accounting methods, rose for the third straight day, the longest rally since June.

Noble rose 3.5 percent to 44.5 Singapore cents, bringing its three-day advance to 7.2 percent. About 77 million shares changed hands on Friday.

The stock is still trading 63 percent 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, by phone. “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 $2 billion within five years from $1.49 billion in 2014.