SINGAPORE, March 12 Singapore Exchange Ltd
issued on Wednesday its first ever "trade with
caution" warnings, flagging two listed firms which have seen
their share prices surge over the past two days after a penny
stock scandal hit turnover last year.
The bourse told investors that they should be careful when
dealing in the shares of Ziwo Holdings Ltd and Giken
Shares in Ziwo, which makes materials used in furniture
upholstery, rose more than 130 percent over the course of
Tuesday and Wednesday, from S$0.04 to as high as S$0.104. When
queried by the exchange, the company said it had no explanation
for the increase.
Giken Sakata, which makes components for the computers and
electronic industry, saw its shares rise 61.7 percent between
Monday and Tuesday. The company said a big shareholder, Miyoshi
Precision Ltd, had sold its entire stake in the company on
Tuesday when asked by the exchange to explain the stock
SGX had said in February that it would start issuing "trade
with caution" announcements as part of a slew of changes it was
bringing in after the penny stock scandal hit trading volumes on
Southeast Asia's largest bourse.
"The exchange will investigate all possible transgressions
and will work with the relevant regulatory agencies to pursue
actions to maintain a fair, orderly and transparent market," SGX
said in the warnings.
Concerns about trading patterns of penny stocks on
Singapore's stock market surfaced in October when shares in
three companies - Blumont Group Ltd, LionGold Corp
and Asiasons Ltd - crashed and wiped out
about S$8 billion ($6.32 billion) in value in just two days
after huge run-ups in their share prices.
($1 = 1.2667 Singapore Dollars)
(Reporting by Rachel Armstrong; Editing by Miral Fahmy)