November 10, 2008
Archer Daniels Midland shares up after sell-off
Archer Daniels Midland Co. (ADM) closed sharply higher Friday (November 7), retracing some of Thursday''s steep declines and bringing a volatile week for the stock to a close.
Shares of the food additive and ingredient company had soared earlier in the week after the company reported better-than-expected fiscal first-quarter results, and then dropped off Thursday amid a broad market decline.
Shares closed up 11 percent to US$22.58, although the stock was still below a high for the week of US$25.82, which it hit on Wednesday.
When asked for comment, Archer Daniels said it doesn''t speak about its stock movement.
Archer Daniels shares first surged on Tuesday, after the agribusiness giant reported its quarterly net income more than doubled as sales surged on higher prices. But the company took back the majority of those gains Thursday.
Shares in the agribusiness sector have slumped over the past six months as growth slows for protein-based feed for animal and human consumption. ADM, like rival Bunge Ltd.(BG), has insisted underlying demand remains strong despite the slowdown. Bunge, whose shares saw a similar rollercoaster ride this week, closed up 7.9 percent to US$44.22, below a high for the week set Tuesday of US$46.76.
