Olam shares rise after announcing stock buyback

Olam International rose the most in more than seven months after announcing a buyback of as much as 10% of its outstanding shares.

Olam climbed as much as 8%, the most since Oct. 27, to $1.755 before trading at $1.74 as of 9:33 a.m. in Singapore. The benchmark Straits Times Index gained 1.5%.

The Singapore-based company is buying back shares to reflect “the confidence that Olam’s board has in the long term fundamentals and growth prospects of the group,” Chief Executive Officer Sunny Verghese said in the June 8 statement.

Shares of Olam, one of the top three suppliers of rice, cocoa and coffee, has declined 18% this year as commodity price volatility eroded profit.