Singapore-listed Noble Group’s shares tumbled yesterday as the embattled commodity trader’s cash holdings fell to the lowest in more than a decade, adding to pressure on what analysts say is an all but inevitable debt restructuring. The bonds due in March also dropped.

The Hong Kong-based trading house posted a third-quarter net loss of US$1.17 billion (S$1.6 billion), taking losses for the year so far above $3 billion, according to a statement after the close on Thursday. Available cash at continuing operations dropped to just US$262 million at the end of September, according to a Bloomberg analysis of company data. Liquidity headroom – a measure of capital available to fund its business – fell by 43 per cent over the quarter.

More than two years into a crisis marked by accounting criticisms and concern the company is headed for default, Noble Group is offloading once-core operations. The latest loss was flagged two weeks ago, when the company announced the sale of its oil business to Vitol Group. BNP Paribas and JPMorgan Chase & Co are among banks that have predicted the company will probably be forced to restructure its remaining debt of over $3 billion. – The Straits Times

Cambodian rice exports grow on big China orders

Cambodia has exported 446,439 tonnes of milled rice in the first 10 months this year, a 17 per cent increase compared to the same period last year, according to a report released Thursday by the Secretariat of One Window Service for Rice Export.

According to the report, China is by far the largest market for Cambodian rice and has accounted for about one-third of all rice exports so far this year. France is the second largest market, taking up 13 per cent of rice exports, while Poland is third accounting for 8 per cent with the United Kingdom fourth with a 5 per cent share. – Phnom Penh Post

BI urges acceleration of stimulus package

Bank Indonesia has called on the government to accelerate the introduction of its fiscal stimulus package to boost economic growth in the fourth quarter.

“The implementation of the fiscal stimulus [package] should be accelerated, because it is very important to boost the economy,” BI deputy governor Perry Warjiyo said on Wednesday on the sidelines of the Indonesia Sharia Economic Festival (ISEF) at Grand City Surabaya.

The fiscal stimulus package would encourage producers to boost their production of goods, instead of releasing products from their finished goods inventory, as many are currently doing.

“The producers are reluctant to increase production. They prefer to use the inventory. That’s what we are seeing,” Perry said.

He said, however, that BI had seen some progress, particularly in government consumption, investment and exports, although growth had not yet reached expectations. – The Jakarta Post

Conventional taxis reel from ride-hailing apps

The emergence of ride-hailing applications in Indonesia has hit the business of conventional taxis badly as a major part of their market has been taken by the technology-based transportation services.

The two largest conventional taxi operators -PT Blue Bird and PT Express Transindo Utama, a subsidiary of the Rajawali Group – have posted serious declines in their financial performances, while the smaller operators can hardly survive.

Blue Bird’s income decreased by 14.1 per cent to 3.13 trillion rupiah (US$231.62 million), while its profits dropped by 16.28 per cent to 302.12 billion rupiah in the third quarter of 2017.

Express has done worse as its income has dropped by 54.81 per cent to 231.62 rupiah. The company has had to lay off hundreds of employees and sell off property.Koneksi Kapital research head Alfred Nainggolan said the emergence of the online services had badly disrupted the businesses of conventional taxi firms.

The financial situation of the conventional taxi drivers has been seriously affected because they still have to pay loan installments for their vehicles, Alfred said. – The Jakarta Post