Noble buys back 13m shares in third such move this year

CONTINUING its efforts to instill confidence among investors, Noble Group has bought back 12.98 million of its own shares - its third buyback since founder and chairman Richard Elman pledged on June 11 to "right the damage" to its share price.

The commodity trader, which has attracted criticism for its accounting practices, was the third-most active stock on the Singapore market on Tuesday. Its shares slipped 1.389 per cent, or one Singapore cent per share, to 71 Singapore cents as at 9.26am.

Noble announced before the market opened that it had bought back its own shares on Monday, by way of market acquisition, at an average price of 70.87 Singapore cents apiece, or S$9.22 million in total.

The company's shares have been under pressure since February, following questions raised about its accounting practices and amid a weak outlook for commodities. The counter last closed at a year-to-date high of S$1.205 on Feb 13.

Noble has rejected all of the criticisms. Mr Elman said in a public letter to shareholders on June 11 - the day of the first buyback - that the company is battling against rumours and inaccurate statements.

"I would only ask you one thing: Have a little confidence and patience in us," Mr Elman, who is also the biggest shareholder in the company, wrote in the letter addressed to employees and shareholders. "We will use all our best efforts to recover the share value."