Olam International shares rebounded Thursday, recouping some of the losses in previous sessions as Singapore state investment fund Temasek said it was keeping its 16 percent stake in the farm commodities trader.
Muddy Waters Research, a US-based shortseller, had sent the stock plunging after it warned that the Singapore-based Olam was in danger of collapsing like US energy trader Enron.
Olam shares closed four percent higher at Sg$1.56, but analysts warned of further volatility.
Despite the gains, the stock is still down 10 percent since Carson Block, the influential founder of Muddy Waters, told an investment conference in London on November 19 that he was betting against the company.
Muddy Waters on Tuesday released a 133-page report supporting Block's criticism of Olam's accounting practices, debt levels and business model.
Olam fired back with a 45-page rebuttal on Wednesday and its chief executive Sunny Verghese followed it up with a conference call with the media and analysts in which he thanked Temasek for its support.
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