SINGAPORE – Shares of Singapore-listed palm oil producers First Resources and Bumitama Agri fell in early trading on Oct 26 before recovering some ground by noon.
They were among 10 Singapore-registered companies that received notices from the National Environment Agency (NEA) after market close on October 23, seeking documents and information over the transboundary haze affecting the region.
First Resources shares fell as much as 4.9 per cent, or 18 cents, to $3.50, from their closing price of $3.68 on Oct 23.
Bumitama Agri shares fell as much as 6.7 per cent, or 11 cents, to $1.52 at the opening. Its previous closing price on Oct 23 was $1.63.
Both counters recovered ground by noon on Oct 26, with First Resources trading at $3.64 and Bumitama Agri at $1.61.
Other plantation stocks saw more muted movements.
At noon, shares of Wilmar International edged down one cent to $3.33 from their closing price of $3.34 on Oct 23.
Golden Agri-Resources shares rose 0.5 cent, or 1.9 per cent, to 27.5 cents, from 27 cents previously.
Shares of Indofood Agri Resources, Kencana Agri, and TSH Resources remained unchanged amid thin trading volumes.
NEA said it had issued notices to 10 Singapore-registered companies under the Transboundary Haze Pollution Act (THPA).
The notices require the companies to provide information about their corporate relationships, locations of their land concessions in Indonesia, and measures taken to prevent and combat fires to facilitate investigations.
Besides First Resources, Bumitama Agri, the companies served notices included Wilmar International, Indofood Agri Resources, Kencana Agri, Golden Agri International, Asia Pulp & Paper Company, Asia Pulp & Paper Company (China), TSH Global Plantation and TSH Oversea.
Golden Agri International is a subsidiary of SGX-listed Golden Agri-Resources, while TSH Global Plantation and TSH Oversea are linked to plantation group TSH Resources, which has a primary listing in Malaysia and a secondary listing in Singapore.
The five SGX-listed companies named by NEA have since issued statements addressing the notices.
Wilmar International was the first to announce its plan to comply with the directive from NEA on Oct 23. This was about three hours after the agency first announced that it had issued the legal notices.
Wilmar’s spokesperson later told ST that it is working to provide the relevant documents and information, and will give more details when there are material updates.
First Resources said in its filing on Oct 24 that it has agreed to provide the necessary details.
Subsequently, Bumitama Agri and its subsidiaries said in a filing on Oct 24 that the company will provide the requested documents and information to NEA.
Golden Agri-Resources also said on Oct 24 its Singapore subsidiary Golden Agri International has received the NEA notice and will cooperate with the government agency.
Meanwhile, Indofood Agri Resources said on Oct 25 it received a notice from NEA requiring it to provide documents and information. The company said it will make further announcements as and when there are material developments.
Kencana Agri said on Oct 25 that it received a notice from NEA on the same day “requesting certain documents and information”, adding that it would cooperate fully with NEA in accordance with applicable laws.
TSH Resources said on Oct 26 that its Singapore-incorporated subsidiaries, TSH Overseas and TSH Global Plantation, received notices from NEA on Oct 23 requiring them to provide documents and information by Nov 2.
TSH Resources said it was reviewing the notices and would engage with NEA.
Introduced in September 2014, the THPA targets those responsible for causing or condoning fires, and can be activated if the haze causes the Pollutant Standards Index, which measures air quality in Singapore, to stay in the unhealthy range in any part of the island for 24 hours or more.
Those guilty under the Act can be fined up to $100,000 a day, with the total capped at $2 million.
The current haze is caused by fires raging in forests and plantations in Indonesia, primarily Kalimantan and Sumatra.
The blazes are sparked by slash-and-burn practices to clear land. Such practices are illegal in Indonesia, but are still carried out as they are cheaper than removing trees using excavators.
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