Shares of cruise line operator Star Cruises (SARC.SI: Quote, Profile , Research) fell as much as 8.7 percent to US$0.42, extending a 13.2 percent plunge in the previous session, as dealers said there was continued forced selling in the stock after it resumed trade on Monday from a trading suspension.

It was also the most actively traded stock on the Singapore bourse with 42.9 million shares changing hands.


The company has said private equity group Apollo Management LP agreed to buy a 50 percent stake in its unit NCL Corp for $1 billion.

"There are remnants of forced selling after so many days of suspension, but otherwise the stake sale is a good thing. NCL has been bleeding Star Cruises," said a local dealer.

Moody's Investors Service has put on review the B1 corporate family rating of Star Cruises, citing uncertainties after the deal.

"Star Cruises' current financial profile is largely dragged down by its consolidation with NCL. An improvement in the latter's financial and liquidity positions could lower Star Cruises' financial burden and therefore the need to provide ongoing support to NCL," Kaven Tsang, Moody's lead analyst for Star Cruises, said in the note on Monday.


FORCE SELLING ON THE WAY DOWN SIDE

Star cruise is going back up today....