Olam is up 1.7% at $1.79, the best-performing STI component, bucking the broader market’s selloff despite several analysts saying its fiscal 1Q13 results were just in line with expectations; fiscal 1Q13 net profit rose 26.2% on year to $43.2 million.
The stock may be getting a fillip as its recent selloff was partly due to earnings concerns spurred by peer Noble reporting disappointing results; Olam remains down nearly 9% month-to-date, after falling 4.4% Wednesday.
“If you’ve fallen enough, you get the occasional bounce,” says CIMB head of research Song Seng Wun; “commodity-related plays did fall significantly yesterday.” Orderbook quotes suggest Olam isn’t likely to retest its $1.845 intraday high.
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