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OSIM International, queried by the Singapore Exchange (SGX) on the second consecutive day of a fall in its share prices, said on Wednesday that it was unaware of any reasons that could have caused the unusual trading activity in its shares.
The shares for the luxury massage chair maker tumbled 4 per cent on Tuesday and another 4 per cent on Wednesday morning.
At 4:15pm on Wednesday, OSIM was trading around S$2.32, down 11 cents or 4.5 per cent. More than six million shares changed hands.
Some analysts have suggested that the stock might have been dented by reports that retailers in Hong Kong have been affected recent protests, which shut down certain parts of the former British colony. They estimated that Hong Kong sales account for about 15 per cent of OSIM's sales.
Other analysts speculated that the company's upcoming results could disappoint. An analyst with a local house, referring to tea retailer TWG, in which OSIM has a 70 per cent stake, said: "Low possibility, we think, because they are consolidating TWG this year and there was no TWG accounted in last year's numbers. So, any disappointment will be cushioned.'
One analyst noted that the company has completed the issue of its S$170 million convertible bonds due 2019, but has no fixed acquisition in sight.
In its reply to SGX, OSIM said: "There are currently no ongoing discussions regarding any joint ventures, mergers, acquisitions or purchases or sales of any significant assets.''
The SGX said that, in view of the trading activities observed and OSIM's response, shareholders and potential investors should exercise caution when dealing in the securities.