More volatility ahead for Noble as share price tumbles to 8-year low

On back of a muted global commodities outlook.

Volatility may continue to haunt Noble despite the conclusion of its US$750m sale of Noble Agri Limited (NAL) to COFCO International, according to a report by OCBC.

Noble’s share price has been swinging wildly of late. It surged by as much as 22% on news of the impending NAL sale, but lost almost all of the gains following a credit downgrade from Moody’s.

The report cited that Moody’s cut the rating on Noble’s senior unsecured bond rating. Moody’s noted that while the sale will improve Noble’s liquidity profile, its liquidity position continues to be constrained. Soon after the downgrade, Noble’s share price plummeted 12% and then traded 6.6% lower at $0.035, reflecting a record low in 8 years.

Considering the muted outlook on the global commodities market, Noble’s share price will likely see more oscillation, OCBC asserted.