SINGAPORE, Aug 7 (Reuters) - Neptunes Orient Lines, the world's seventh-largest container shipping firm, plunged as much as 8.4 percent to hit a 19-month low after it warned business will be more difficult in the second half of the year.
NOL fell to S$2.52 with almost four million shares changing hands.
The shipping firm posted a 19 percent fall in net profit on Thursday due to tough conditions and higher costs, and said it faced a worsening shipping market and expensive fuel. [ID:nSP112524]
"Although its results are not that bad compared to other shipping lines, investors are reacting to the bleak outlook. Freight rates can't really sustain at this level, and will definitely not go higher," a dealer at a local broking house said.
"Moving ahead, NOL will face rising fuel and oil prices and over the long term, we need to look at how the management can hedge oil prices and manage costs," he added.
0125 GMT - Straits Times Index <.FTSTI> was down 0.6 percent.
COSCO FALLS ON PRESIDENT'S SHOCK EXIT
Ship building and repair firm Cosco Corp (Singapore) <COSC.SI> fell as much as 7.8 percent to hit a 17-month low on news of its president Ji Hai Sheng's shock exit.
Shares of Cosco fell to S$2.49 with more than four million shares changing hands.
"A new and sudden change in a key management role does not bode well in this weak investor climate," said DMG & Partners analyst Serene Lim. "The share price is likely to be pressured, at least in the near term."
Cosco announced on Wednesday that Ji, who was also the vice-chairman and executive director of Cosco, will be stepping down with effect from Thursday.
A report in the Straits Times said Ji was informed of the board's decision only on Wednesday.
He will be replaced by Jiang Lijun, the chief executive officer of Cosco Shipping since 2002.
0105 GMT - Straits Times Index <.FTSTI> was down 0.54 percent.
