Noble

Noble: (S$0.42) Index review - will it be retained in STI?
The semi-annual FTSE Index review will begin from 21 Aug over the next two weeks, with any changes to be applied after the close of market on 18 Sep.

All eyes will be on Noble, which has fallen to the number 34th spot among eligible counters for the 30 index components that make up the closely followed FSSTI.

With its market cap decimated by 65% since Feb to $2.77b, Noble now ranks behind UOL, Yangzijiang, Suntec REIT and CapitaLand Commercial Trust in the reserve list, just ahead of Genting HK at $2.76b.

According to FTSE ground rules, a company in the STI will be deleted at the review if it falls below the 41st position among eligible securities.

That position is currently is occupied by Mapletree Greater China Commercial Trust with a market cap of $2.60b, just 6.5% below Noble's.

Meanwhile, Fitch has cautioned that Noble faces an "immediate negative rating action" if banks weaken financial support for the commodity trader although the agency believes that Noble would be able to generate positive operating cash flow in 2H15 and its strong liquidity headroom supports its current BBB-/Stable rating.