Maybank Kim Eng downgraded Olam International Ltd to "sell" from "hold" on Tuesday and cut its target price to S$1.42 from S$1.75 after the Singaporean commodities trader announced its fund-raising plan.
"This exercise may also hurt short-sellers, as script lenders will have to call for borrowed stock in order to participate," Maybank Kim Eng said.
"However, management's earlier stance that it could easily survive 12-18 months even in a credit market seizure may now sound hollow and minority shareholder confidence may be eroded." Full story
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