Olam Gains After U.S. Stimulus Plan Revives Commodity Prices

Dec. 9 (Bloomberg) -- Olam International Ltd. led gains among commodity suppliers in Singapore trading on investors’ optimism that government efforts to revive economic growth will create jobs, boost demand and sustain raw-material prices.

Olam rose as much as 14 percent to S$1.19, the biggest gain since Dec. 4. The stock, which traded at S$1.19 at 10:46 a.m. local time, extended last week’s advances, which followed a plan to repurchase convertible bonds and reduce borrowings.

U.S. President-elect Barack Obama said Dec. 7 his economic recovery strategy will focus on making the biggest investment in the nation’s infrastructure. The Reuters/Jefferies CRB Index of 19 raw materials advanced 5.2 percent yesterday, the biggest gain since Nov. 24.

“People have been too pessimistic about everything,” said Masahiko Ejiri, who helps manage the equivalent of $26 billion at Mizuho Asset Management Co. in Tokyo. “Demand for commodities will not be as bad as people thought.”

Noble Group Ltd., the Hong Kong-based commodity supplier, gained as much as 9.3 percent to 99.5 Singapore cents. Golden Agri-Resources Ltd., a unit of Indonesia’s largest oil-palm grower, rose as much as 7.3 percent to 22 Singapore cents, and traded at that level at 10:38 a.m.