Penny stocks still languishing despite consolidation

Singapore

THE share consolidations that numerous mainboard-listed firms have undergone thus far to comply with Singapore Exchange's minimum trading price (MTP) rule seem to have largely turned out to be a case of one step forward, two steps back - hardly the most encouraging sign for the many others that may soon have to take a similar path.

The majority of the stocks that recently finished MTP-related consolidations have lost ground following the move, with a handful slipping precariously close to the 20-cent MTP threshold and at least one still languishing in the single-digit price range.

The fact that one round of consolidation failed to do the trick would not be a good sign for companies in that danger zone, industry watchers note…