(Adds quotes from analyst, other queries by SGX)
By Anshuman Daga and Eveline Danubrata
SINGAPORE Oct 4 The Singapore Exchange Ltd
suspended trading in three stocks on Friday, warning
the market may not be fully informed of the companies' affairs
after a plunge in their share prices, with one falling more than
The bourse first halted trading in diversified company
Blumont Group Ltd, whose stock has risen as much as 12
fold this year, after it slumped 56 percent in morning trade. It
later suspended gold miner LionGold Corp Ltd and
investment company Asiasons Capital Ltd.
Shares in Asiasons, which is the biggest investor in
LionGold and whose stock nearly trebled in the past month, fell
61 percent before trading was halted. LionGold, whose stock had
jumped as much as 60 percent this year, fell 42 percent.
None of the three companies responded to requests by Reuters
for comment. The SGX declined to give comment beyond its
statement that trading had been temporarily suspended "as there
could be circumstances that would result in the market not being
SGX-directed trading suspensions are fairly rare on the
"People cannot really explain why the share prices have gone
up so rapidly on high volume," said William Tng, analyst at CIMB
Research. "There seems to be a disconnect between the share
price surge and the business in terms of cash flow and
"LionGold and Blumont have been making a series of
acquisitions, but the potential earnings or returns from these
acquisitions are uncertain at this point in time."
The move by the exchange comes after a spate of reverse
takeovers in the market, which has seen many smaller companies
break away from their core businesses and enter into unrelated
areas, raising issues of corporate governance.
The SGX also queried recent trading in three other
companies, Innopac Holdings Ltd, ISDN Holdings Ltd
and ISR Capital Ltd, which all fell sharply
Asiasons is the biggest shareholder in ISR, while LionGold
has a stake in Innopac. Blumont and LionGold have a
non-executive independent director in common.
In an exchange filing, Asiasons said it had been informed
that there were "malicious market rumours that a team from the
Monetary Authority of Singapore has been sent to the company's
office to carry out investigations. The company confirms that
such market rumours are false."
Smaller capitalised shares are the most actively traded on
the Singapore bourse, which has been pushing for greater retail
participation in the market.
Blumont's shares jumped to a record of S$2.54 on Tuesday,
and this year's rally saw the company's market value catapult to
S$6.6 billion ($5.4 billion).
Blumont, which has businesses in investment and property,
moved into energy and mining industries late last year.
Earlier on Friday, Blumont said it had agreed on the terms
of a proposed takeover bid of a foreign-listed coal mining
company for up to S$146 million.
It had called a news conference for Friday afternoon in
Singapore, but then postponed it without giving details.
On Friday evening, LionGold said it was in advanced talks to
buy a stake in a gold mining company listed on three foreign
stock exchanges, but the unnamed target firm was considering if
the acquisition should continue in view of the suspension.
($1 = 1.2493 Singapore dollars)
(Additional reporting by Rujun Shen; Editing by Rachel
Armstrong and Richard Pullin)