UPDATE: Creative Technology: Unaware of reason for stock price drop

Singapore two-dollar bills

Creative Technology said on Thursday that it was unaware of a reason for the nearly 17 percent plunge in its stock price amid a surge in volume.

That was in a sparse response to queries from the Singapore Exchange Securities Trading, or SGX-ST.

“The company is not aware of any material information concerning the company, its subsidiaries and associated companies that might explain the unusual price movements in the company’s shares,” Creative said in the exchange filing.

“The company is not aware of any other possible explanation for the unusual price movements,” it added.

The stock ended Thursday down 16.75 percent at S$3.28, off the day’s low of S$3.20. That was down from an intraday high of S$6.08 on 30 November. The selloff appears to have begun on 20 December and with an escalation on Wednesday and Thursday.

In an email to clients, one trader noted that Creative hasn’t yet published sales data on its new Super X-Fi products.

“If it’s selling like hot cakes, [the] company would have published the figures,” the trader said in the email.

The Super X-Fi technology uses 3D sound for improved audio fidelity. Creative’s recent product, the SXFI AMP headphone amplifier dongle, uses the Super X-Fi technology and can be used with studio-grade headphones, Creative has previously said.

Creative Technology didn’t immediately respond to Shenton Wire’s request for comment on the Super X-Fi sales.

This article was originally published on Thursday, 27 December 2018 at 21:26 SGT; it has since been updated to include the request for comment from Creative. 

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