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NOL shares hold steady
2009/3/16
Neptune Orient Lines'' share price recovered slightly yesterday after plunging on the back of rumours that it was considering a rights issue, the Straits Times reported.
The counter rose 1.5 cents to close at 88 cents yesterday, but it is still down a hefty 13.7 per cent for the week so far.
NOL responded to the speculation that it might turn to its own shareholders to raise funds followed Chartered Semiconductor Manufacturing''s launching of a US$300 million rights issue with a statement to the Singapore Exchange that it "continually evaluates all available options to improve its performance and strategic position".
The firm also added that it was the "company''s policy not to comment on market rumour or speculation".
Amid the credit crunch, a growing number of companies are launching rights issues as a way to raise cash.
It has been a rough ride for the shipping line, at a time when the number of empty container ships worldwide is at a record high owing to a dramatic slowdown in world trade.
Last month, NOL reported an 84 percent plunge in full-year net profit for the 12 months ended December 26 last year to $83.1 million, although revenue rose 14 per cent to $9.3 billion.
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2009/3/16