Olam

Olam: Olam recently revealed that Temasek has increased its deemed interest in the company to 19% as of 28 Dec 2012; this is up from around 16% before the Muddy Waters allegation on 20 Nov 2012. However, OCBC continue to believe that there are still several medium- to long-term issues that need addressing. House also foresee potential economic headwinds for the commodity sector as a whole. As such, maintain HOLD rating and $1.44 fair value for now.