Wilmar slips amid graft case; Singtel falls on Optus settlement

Increased volatility for several SGX stocks as Israel-Iran tensions escalate

- Sheila Chiang

Shares of Wilmar Group's Singapore-listed entity Wilmar International fell some 3 per cent last week after the Indonesian authorities seized 11.8 trillion rupiah (S$925.2 million) from the group in a palm oil graft case.

The stock slipped below $3 for the first time since March 2020, closing on June 20 at $2.92.

Indonesia's Attorney-General's Office said on June 17 that the seizure was part of efforts to recover state losses from corruption tied to the issuance of palm oil export permits in 2022.

This comes as the Indonesian authorities are appealing against a court ruling that had cleared Wilmar and two other palm oil companies, which they accuse of paying bribes to obtain such export permits.

Wilmar said the money would be returned if Indonesia's Supreme Court cleared the company of wrongdoing in the ongoing case, but would be forfeited in part or in full if the court ruled against it.

Shares of Singtel fell 2.28 per cent last week, closing at $3.86 on June 20.

Its Australia subsidiary Optus Mobile said on June 18 that it had reached a settlement with the Australian Competition and Consumer Commission, after the competition watchdog in October 2024 filed court proceedings against Optus over allegations of sales misconduct.

The settlement includes a proposed A$100 million (S$83 million) penalty, subject to approval by the Federal Court, as well as an enforceable undertaking requiring Optus to address the misconduct.

These include making changes to its retail processes, systems and sales incentives.

Optus added that it has apologised to affected customers and is providing them with remediation.

STOCKS REACT TO ESCALATING ISRAEL-IRAN CONFLICT

Several Singapore Exchange (SGX) stocks saw increased volatility last week amid escalating tensions between Israel and Iran, which also pushed crude oil prices higher.