THE Singapore Exchange (SGX) has warned investors to trade with caution when it comes to specialist engineering services provider Koyo International.
In a release on Friday, it noted that the counter has outperformed the broader market between Oct 26 last year and Jan 14 this year.
"SGX's review of the trades in Koyo showed that a small group of individuals was responsible for 60 per cent of the trading volume for Koyo shares during this period," said SGX, adding that at least half of these trades were the group buying and selling among themselves. "SGX is working with the relevant regulatory agencies on the matter."
In response to earlier queries from SGX on unusual trading activity, Koyo said on Thursday: "As part of its ordinary course of business, the company is continuously engaged in discussions with various parties on potential projects and business opportunities. In this regard, the company has been, in recent weeks, engaged in discussions in relation to potential projects. We have not been informed of any decision. As such, the company is unable to conclusively attribute the information disclosed above to the trading. The company is not aware of any other possible explanation for the trading."