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Hot stock: Venture surges 10% after CEO's purchase
THE share price of Venture Corp surged 10 per cent on Wednesday to a level last seen in 2004, prompting a query from the Singapore Exchange.
On Wednesday, Venture hit S$16.80 a share before hovering around S$16.63, up S$1.38, or 9.0 per cent at 03:06pm. More than 3 million shares changed hands.
On Tuesday, Venture's chairman and chief executive officer Wong Ngit Liong bought 400,000 shares in the technology provider.
Mr Wong, who is widely seen as instrumental in the growth of the Singapore-listed contract manufacturer, bought 400,000 shares at S$15.255 each for a total of S$6.10 million. The open market purchase boosted his stake to 7.08 per cent, from 6.94 per cent previously.
The latest purchase was Mr Wong's second since July. According to some analysts, the July purchase could be his first in over a decade.
One analyst said Venture is also getting a boost from news that it would join the STI Reserve List on September 18, 2017.
Yet, another said Illumina, which is believed to be Venture's major customer, has guided a 12 per cent growth forecast in its revenue for fiscal year 2017. That could in turn drive Venture's growth.