Olam +8.0%; Bond Buy Back Positive – Analyst

0210 GMT [Dow Jones] Olam (O32.SG) currently best blue chip performer after the commodities player says it is seeking to buy back convertible bonds; shares +8.0% at S$0.95 vs STI +1.7%. Olam says in statement it is making offer to buy back up to $150 million of the S$300 million of convertible bonds it sold earlier this year; bondholders have until Friday to tender holdings with settlement scheduled for Dec. 17. Analyst at local house says news is positive, “if they are able to buy back the bonds, which are trading at a deep discount, then it looks like a good move as they will retire a lot of debt at a good price.” Adds fact that company has financing in place to do the buy back also positive as shows lenders have confidence. Chart shows decent traded volume, stock oversold on technical indicators; suggests may have upward momentum with resistance tipped at 30-day moving average of S$1.08. (KIG)