SINGAPORE (Oct 11): Shares in Olam International are hovering at a three-year high, rising 0.5% to $2.24 on Wednesday to bring the week's rise to 4.7%.

The rise follows a move by Temasek Holdings last Friday to boost its stake in the commodities supplier and trader.

In a response on Monday after an unusual trading activity query by the Singapore Exchange, Olam said Singapore state investor now owns a 57% stake in the group from 52% previously after converting its warrants into 282 million shares.

Analysts say the acquisition is a fresh vote of confidence in Olam, which was once targeted by short sellers. In 2012, Temasek raised its stake in Olam even after Muddy Waters issued a report questioning the company's accounting strategy, an accusation which the group strongly denied.