Phillip, CIMB, UOB impose curbs on Noble Group share trading
[SINGAPORE] Phillip Securities, UOB-Kay Hian Holdings and CIMB Group Holdings restricted online trading and imposed other curbs on Noble Group Ltd. shares as volatility rose. The stock posted its first gain in seven days.
Phillip Securities will limit Noble trading to phone orders through its brokers. CIMB is asking clients buying more than S$200,000 of the Singapore-traded stock to pay cash upfront, according to trader Ernest Lim. At UOB, a 50 per cent cash down-payment is required for purchases above S$50,000, dealer Jimmy Ho said.
Noble, the worst-performer on the benchmark Straits Times Index this year, has slumped more than 60 percent since February when its accounting methods first came under attack by a group called Iceberg Research. Since then, profit has been hurt by the slide in global commodity markets, the company's credit outlook has been cut to negative and its bonds are trading below prices typical of an investment grade issuer.
"This is part of our normal risk management process," Loh Hoon Sun, managing director of Phillip Securities, said in a phone interview, adding that its brokers "will look at each client's background to make sure they don't over trade on this speculative stock."
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