Shares of the world’s largest palm oil firm Wilmar International fell as much as 6.4% to their lowest in more than 3 years on Friday, on market talk that China had asked edible oil suppliers to keep prices stable, traders said.
Responding to market talk that China’s government is imposing a price increase limit on cooking oil, Wilmar said there was no control on cooking oil prices.
“However, the government has advised that companies should avoid increasing prices unless it is absolutely necessary,” Wilmar said in a statement on Friday.
Wilmar shares fell more than 6% to $3.22, with 22 million shares traded, more than double its average volume over the last five sessions. Wilmar was the most heavily traded stock on the exchange by value.
The company has been hit by losses at its largely China-based oilseeds and grains business, due to rising costs and excess capacity.
Wilmar is the worst-performing stock in the benchmark index, down 31% as of Thursday’s close.
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