SHARES of Ellipsiz continued to climb on Tuesday, a day after UOB Kay Hian initiated coverage with a "buy" call on the semiconductor equipment provider.

Ellipsiz was up 6.48 per cent, or 0.7 Singapore cent, to trade at 11.5 Singapore cents as at 9:50am. It was the second-most active stock in the morning, with 19.3 million traded shares.

UOB Kay Hian on Monday put out a note recommending that investors buy the stock based on a target price of 17.1 Singapore cents. The broker called Ellipsiz "an attractive...target" for acquisition.

"While Ellipsiz is now a shadow of its former self, the group continues to be held in high regards in the industry," UOB Kay Hian wrote.

Singapore Exchange issued a trading query on Monday as the stock jumped 12.5 per cent to close at 10.8 Singapore cents.

Ellipsiz on Tuesday said it was not aware of any undisclosed information that could explain the trading, but highlighted the UOB Kay Hian report.