Shares of Noble Group, one of Hong Kong's biggest companies, plunged 26.5 per cent to their lowest in over two years after the firm announced its first quarterly loss in 14 years and the resignation of its chief executive.
The price of Noble shares, which are listed in Singapore, fell to S$1.18 amid heavy selling, with 473 million shares trading hands.
The supply chain company, which deals in agricultural, industrial and energy products, posted a third-quarter net loss of US$17 million. Noble recorded a net profit of US$157 million in last year's third quarter. The loss occurred despite a 39.8 per cent surge in revenue to US$20.88 billion.
'Noble Group posted a surprising net loss for the third quarter,' said a report by OCBC Investment Research, which had a sell rating on Noble. 'It recorded exceptional [mostly unrealised mark-to-market] losses amounting to US$51 million for the quarter. Excluding these items, Noble would still have posted a 74 per cent year-on-year tumble in core earnings to US$33.5 million.'
Noble was also hit by global economic turbulence, which caused gyrations in commodity prices and counterparty defaults, CIMB analyst Lee Wen Ching said. 'Noble is not the only one that has been hit. Even big guys like Cargill, ADM and Bunge have been adversely affected.'
Lee forecast an annual decline in Noble's earnings for the whole year, though it will remain profitable.
'Previously, the market expected high profit growth for Noble in 2012, but the expectation will be lower,' said a Singapore equity analyst who asked not to be named.