Singapore's Noble Group surges 38 percent in heavy trading

Stock climbed to its highest close since May.

noble
The company logo of Noble Group is displayed at its office in Hong Kong, China. REUTERS

Shares of embattled commodity trader surged as much as 38 percent on Thursday, with the stock climbing to their highest close since May.

There were speculations that large investors may be building stakes, resulting in a sharp upmove in the share prices.

However, Noble Group in a query from Singapore Exchange said it wasn't "aware of any information not previously announced concerning the Company, its subsidiaries or associated companies which might explain the trading".

Noble Group's lenders are in talks to decide whether to give the commodity trader an extension on its credit line or force it into a restructuring or liquidation, Financial Times reported on Tuesday citing sources with knowledge of the discussions.

The Hong Kong-based company said last month it continued to be in talks with potential investors for a stake sale in the Group or its units.

But the share prices plunged followed by credit ratings downgrades and a series of writedowns.

Noble Group shares closed up 36.2 percent at 64 Singapore cents. The stock is down 62 percent so far this year and has a market capitalisation of just over $300 million from $6 billion in February 2015.

noble
The company logo of Noble Group is displayed at its office in Hong Kong, China. REUTERS

Shares of embattled commodity trader surged as much as 38 percent on Thursday, with the stock climbing to their highest close since May.

There were speculations that large investors may be building stakes, resulting in a sharp upmove in the share prices.

However, Noble Group in a query from Singapore Exchange said it wasn't "aware of any information not previously announced concerning the Company, its subsidiaries or associated companies which might explain the trading".

Noble Group's lenders are in talks to decide whether to give the commodity trader an extension on its credit line or force it into a restructuring or liquidation, Financial Times reported on Tuesday citing sources with knowledge of the discussions.

The Hong Kong-based company said last month it continued to be in talks with potential investors for a stake sale in the Group or its units.

But the share prices plunged followed by credit ratings downgrades and a series of writedowns.

Noble Group shares closed up 36.2 percent at 64 Singapore cents. The stock is down 62 percent so far this year and has a market capitalisation of just over $300 million from $6 billion in February 2015.

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