Ezion takes a hit; Nomura says market worries misplaced

Singapore

SHARES in offshore oil and gas stock Ezion Holdings plunged nine cents or 5.4 per cent to S$1.575, bringing its loss over the past three weeks to almost 18 per cent and taking it closer to its 52-year low of S$1.52.

Market observers said the fall was largely because of worries over the impact a rising US dollar would have on Ezion's US-dollar denominated debt. However, dealers also said the sell-off was aggravated by broad-based weakness brought on by recent plunges on Wall Street - on Thursday, the major US indices fell 2 per cent, leading to a 35.38-point or 1.1 per cent loss for the Straits Times Index on Friday at a five-month low of 3,223.87.