SINGAPORE (Dec 17): Broadway Industrial Group, the manufacturer of actuator arms for hard disk drives, has been issued with a query from the Singapore Exchange Regulation (SGX RegCo) after its share price surged 48.4% on Tuesday.
This marks the company’s second query from the market regulator over the span of six months.
Broadway Industrial has also been on the SGX watchlist since June 6 for failing to meet the minimum trading price criterion.
Some 60 million shares had changed hands during market hours, making it the most heavily traded counter on the bourse for the day. This was a significant increase from the 2.3 million shares that were traded on Monday.
Shares in Broadway had opened at 6.4 cents on Tuesday, rising to 7.3 cents at about 4.25pm. Shares then surged by a further 30% to close at 9.5 cents.
At 4.55pm, the regulator asked Broadway to declare if it was aware of any information not previously announced that might explain the “unusual price movements” in the shares.
“Such information may include events that are potentially material and price-sensitive, such as discussions and negotiations that may lead to joint ventures, mergers, acquisitions or purchase or sale of a significant asset,” says SGX RegCo.
The regulator also asked Broadway if it was aware of any other possible explanations for the trading, which might include the public circulation of information by rumours and reports.
The group was also asked to confirm its compliance with the listing rules.
Shares in Broadway Industrial closed at 9.5 cents on Tuesday, representing a year-to-date increase of 18.8%.
