Singapore Exchange Regulation (SGX RegCo) has issued a trade with caution alert on Metech International.
Shares in the company rose 51% or 12.5 cents higher from Nov 1, 2021 to Dec 21, 2021, despite the Straits Times Index (STI) declining 133.97 points or 4.2% during the period.
In response to a trading query issued Dec 20, 2021, Metech made reference to its earlier announcement on Sept 24, 2021 regarding its subsidiary’s joint venture agreement relating to the lab-grown diamonds industry and mentioned plans to seek approval at an Extraordinary General Meeting for its business diversification. Shareholders' approval was obtained on Jan 11.
After reaching a high of 37.5 cents on Dec 21, 2021, Metech share price fell to 21 cents on Jan 19. The share price movement was in contrast with the STI which climbed 198.86 points or 6.5% across the same period.
SGX RegCo’s review showed that a group of accounts was responsible for 54% of buy volume from Nov 1, 2021 to Dec 20, 2021, and 51% of the sell volume from Dec 22, 2021 to Jan 19 in Metech shares.
Individuals behind the group accounts appear to be connected, SGX RegCo said.
See also: Food Empire draws trading query from SGX (update)
“The individuals within this group traded Metech shares with each other and such trading accounted for approximately half of their traded volume,” it added in a filing.
SGX RegCo is reviewing the trades in Metech shares and will take the necessary actions, including referring the case to statutory authorities where warranted.
Shares in Metech closed 4 cents higher or 19% up at 25 cents on Jan 20.
