Shares of First Resources and Bumitama Agri recovered from early lows Monday after Singapore’s National Environment Agency said it had issued notices seeking records for an inquiry into haze linked to Indonesian fires.
First Resources fell 4.9% to $3.50 from its previous close of $3.68, while Bumitama declined 6.7% to $1.52 from $1.63, The Straits Times reported. The paper said the shares later traded at $3.64 and $1.61, respectively.
NEA said 10 companies registered in Singapore had been served notices under the Transboundary Haze Pollution Act. The agency is seeking information on corporate relationships, the locations of Indonesian land concessions and steps taken to prevent or respond to fires. The notices followed the haze affecting the region and were issued after market close Oct. 23, The Straits Times reported.
First Resources said in an Oct. 24 filing it would provide the requested information. Bumitama Agri and its subsidiaries made the same commitment in a filing that day. EconoTimes previously covered the companies’ responses to the notices.
The Straits Times also reported that Wilmar International slipped to $3.33 from $3.34, while Golden Agri-Resources rose to 27.5 cents from 27 cents. Indofood Agri Resources, Kencana Agri and TSH Resources had no price change amid sparse trading.
The Straits Times reported that the haze was associated with fires in forests and plantations in Kalimantan and Sumatra. It said some land clearing still relies on burning because the method costs less than using excavators, despite being illegal in Indonesia.
Introduced in September 2014, Singapore’s law can be activated if the Pollutant Standards Index remains in the unhealthy range somewhere on the island for at least 24 hours, the paper reported. It said penalties can reach $100,000 per day, capped at $2 million. TSH Resources said its Singapore-incorporated subsidiaries received notices requiring a response by Nov. 2, according to The Straits Times.
