Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
“Of the U.S. does not raise its debt ceiling or ratings agencies downgrade its rating, this will be negative to commodity traders like Olam because their borrowing costs would increase,” said an analyst.
Company Name: OLAM INTERNATIONAL LIMITED
| Research House: HSBC | Price Call: BUY | Target Price: 3.21 |
Shares of Singapore commodity firm Olam International (OLAM.SI) fell as much as 3% on Monday, on concerns that a failure to raise the U.S. debt ceiling could increase borrowing costs for commodity traders, traders said.
At 10:42 a.m., shares of Olam were 2.4% lower at $2.48 with over 4.7 million shares changing hands.
At 10:42 a.m., shares of Olam were 2.4% lower at $2.48 with over 4.7 million shares changing hands.
“Of the U.S. does not raise its debt ceiling or ratings agencies downgrade its rating, this will be negative to commodity traders like Olam because their borrowing costs would increase,” said an analyst.
HSBC also cut its target price for Olam to $3.21 from $3.63 to reflect the firm’s larger equity base after it raised $740 million in June through a share placement exercise.
Shares of fellow commodity trader Noble Group (NOBG.SI) also fell, and were 1% lower at $1.765.
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