Singapore Exchange Regulation (SGX RegCo) has issued a trade with caution alert on Memiontec Holdings.
Shares in the company climbed 295.8%, or 71 cents higher to 95 cents within five months – from Aug 3, 2021 to Jan 12, despite a “modest improvement in the broad market”.
During the same period, the benchmark Straits Times Index (STI) gained 3.4% or 105.73 points in comparison, notes the market regulator.
SGX RegCo had also issued trading queries to Memiontec on Sept 14, 2021 and Jan 12 on unusual price movements in its shares, to which the company responded that it had no knowledge of any reasons that could cause the movements.
According to a review conducted by SGX RegCo between Aug 3, 2021 and Jan 12, a group of accounts were responsible for around 33.7% of the buy volume in Memiontec shares. More than half of these trades were due to this particular group of individuals trading amongst themselves, added the market regulator.
“We have observed several instances of unusual price spikes. In particular on Jan 11 and 12, the group accounted for 39.4% to 44.55 of the buy volume, resulting in a price rise of 14.7% and 21.8% respectively” says SGX RegCo in a filing on Jan 14.
See also: China International Holdings triggers SGX query after shares surge over 116% (update)
SGX RegCo has since referred the matter to the necessary authorities.
Shares in Memiontec closed 1 cent higher or 1.25% up at 81 cents on Jan 14.
Photo: Albert Chua/The Edge Singapore
