Singapore Exchange Regulation (SGX RegCo) said Thursday the sharp rise and swift fall in Metech International‘s shares since November was due to trading by a group of accounts which appeared connected.
“Individuals behind the group of accounts appear to be connected. The individuals within this group traded Metech shares with each other and such trading accounted for approximately half of their traded volume,” SGX RegCo said in a filing to SGX.
“SGX RegCo is reviewing the trades in Metech shares and will take the necessary actions, including referring the cast to statutory authorities where warranted,” the filing said.
The shares posted a rise of around 51 percent between 1 November 2021 and 21 December 2021, despite the Straits Times Index declining over the same period, SGX RegCo noted in a filing to SGX.
After hitting a high of S$0.375 on 21 December, Metech’s shares fell to S$0.21 on 19 January, even as the STI rose, SGX RegCo said in a filing to SGX.
SGX RegCo said its review showed a group of accounts was responsible for 54 percent of the buy volume over the 1 November to 21 December period, and 51 percent of the sell volume over 22 December to 19 January.
The market regulator urged investors to exercise caution when dealing in Metech shares.