SGX RegCo has issued a trade with caution warning on karaoke chain operator 9R, after observing unusual movements of its shares.
The exchange's regulator notes that 9R shares, changing hands at 3.9 cents on June 4, increased by nearly half to 5.8 cents on Aug 14.
In contrast, the broader small-cap FTSE Catalist Index was down 3.2%.
9R, after market hours on Aug 14, announced a loss for its half year and is suffering from negative cash flow from operating activies.
For the six months ended June, 9R reported a loss of $589,000, slightly reduced from $739,000 recorded for the year-earlier period.
Yet, the price of 9R shares remained steady around 5.8 cents from Aug 15 Nov 8, points out SGX RegCo.
See also: SGX RegCo reprimands former directors and CEO of Sunrise Shares Holdings
According to SGX RegCo's review of the trading activities between June 4 and Nov 8, a "few" trading accounts accounted for 85% of the buy trades.
"Initial findings show that multiple clients were behind each account and most of these clients appear to be connected," says SGX RegCo.
"SGX RegCo continues to review and monitor trades in 9R shares and will take all necessary actions including referring the case to statutory authorities where warranted," it adds.
9R shares closed at 5.2 cents on Nov 13.
