Citigroup reduced rating on Wilmar..

Citigroup reduced its rating on Singapore palm oil firm Wilmar International Ltd to hold from buy and cut its target price to S$5.30 from S$6.10.

Wilmar shares were down 1 percent at S$4.97. The shares are flat so far this year, underperforming a 14 percent rise in the broader market. Citigroup reduced its rating from buy and cut its target price to $5.30 from $6.10. This was because margin trends were weak at both its oilseeds and palm merchanizing - both due to heightened volatility,

"While market normalization will help Wilmar's margins recover in these two segments in 2012 fiscal year, the pace of recovery this year will be muted as Wilmar did not record sharply reduced inventory and receivables in the second half of 2011, Citi said in a report.

And it was further felt that the expansion plans at Indonesia may be slow and that might invite more potential competitors to set up facilities.

Meanwhile: Otto Marine falls after rights issue

Shares of Singapore's Otto Marine Ltd declined as much as 11.1 percent after the offshore marine firm proposed a rights issue to raise around S$75.6 million ($60 million). Otto Marine shares were down 9 percent at S$0.131 on volume of 13.7 million shares, 3.3 times the average full-day volume traded over the past 30 days.

The stock was among the top five traded shares by volume.