As shares in Mun Siong Engineering climbed to 6.1 cents at 3.47pm on June 10, or 17.3% higher than its last-closed price of 5.2 cents, a query from market regulator Singapore Exchange Regulation (SGX RegCo) was triggered.
In the bourse filing, SGX RegCo noted Mun Siong Engineering’s “unusual volume movements” in its shares and asked the company to confirm its compliance with the listing rules.
The market regulator also asked the company to reveal any potential information that may have caused the trading volume.
In an update, Mun Siong Engineering attributed the heightened trading to the Petronas' announcement that it planned to double its capital expenditure y-o-y to RM60 billion ($18.8 billion) in 2022. The news was first published on Bloomberg.
Petronas, which stands for Petroliam Nasional, is Malaysia’s national oil company.
However, Mun Siong Engineering has clarified that “the decision to appoint any service provider is made by Petronas at its discretion”.
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“Furthermore, the group is one of the many approved service providers to Petronas. Therefore, there are no assurances that those planned capital expenditures mentioned in the Business Times article will translate to any additional revenue for the group,” reads the statement released by the company.
“The company will make the necessary announcement when such material contracts (if any) are secured,” it adds.
Further to its statement, Mun Siong Engineering highlighted its May 15 announcement on its proposed investment of US$7.5 million ($10.3 million) to establish an operation in North America.
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Shares in Mun Siong Engineering closed 1.3 cents higher or 25% up at 6.5 cents on June 10. The company was among the top three highest traded counters on the SGX behind Yangzijiang Financial Holding and Mencast.
Some 50.7 million shares changed hands on the same day, compared to the 1.09 million shares changed hands the day before.
