Noble Group (N21.SG) +4.0% at $2.34, in heavy volume of 49 million shares, rising steeply after the lunch break when 65%‐owned Gloucester Coal said its Gloucester basin open cut mining operations, 100 km north of Newcastle, have not been materially impacted by adverse weather on Australia’s east coast. 

Today’s rise continues the stellar 15.7% gain from December 20’s close of $2.04, just before Noble announced its US$950 million ($1.23 billion) acquisition of two sugar cane mills in Brazil. 

 

Kim Eng, which reiterates its Buy call with $3.00 target, says recent developments have been positive for Noble. The house is upbeat on the Brazil buy; “the deal, once completed, should give Noble’s earnings an immediate boost.” 

 

It adds, the Queensland floods should benefit the company: “given that Queensland supplies an estimated 30%‐50% of the world’s coking coal, spot prices can only head north, especially as there seems to be no respite from the heavy rains.” It raises earnings forecasts by 3%‐4%. Orderbook hints resistance at $2.36.