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Hot stock: Noble gains 4.65% in morning trading

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Noble Group went into the opposite direction in a bearish market on Friday, gaining 4.65 per cent or two Singapore cents to S$0.45 as at 9.37am.

NOBLE Group went into the opposite direction in a bearish market on Friday, gaining 4.65 per cent or two Singapore cents to S$0.45 as at 9.37am.

The commodity trader's bounce followed a note from Fitch Ratings on Thursday, which said the group's second-quarter results reflected a "stable financial profile".

Fitch also said it believed Noble would be able to generate positive cash flow from operations (CFO) in H2 2015 even though its second-quarter CFO remained negative.

"Fitch considers Noble's strong liquidity headroom an important factor supporting its ratings. At end-Q2 2015 Noble's available facilities amounted to US$7.7 billion compared with US$10.2 billion at end-Q1 2015. Committed available bank facilities were reduced to US$1.9 billion from US$3.5 billion in the same period. Management cut its bank facilities by US$1.8 billion in Q2 2015 as a result of the change to an asset-light business model following the Noble Agri stake sale and this will help cut its finance expenses," Fitch said in its note.

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"Nevertheless, any signs showing weakening support from Noble's major banking partners will likely result in immediate negative rating action," it said.

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