Sunshine beyond penny lane

[SINGAPORE] Penny stocks took a hit yesterday in reaction to a sweeping police investigation into last October's penny collapse, but the damage appeared contained with larger stocks relatively unscathed.

"We're just viewing things with caution," said a trader at a local broking house. "Seeing how much further the penny segment will be under pressure. In the meantime, some stocks are doing well."

The Commercial Affairs Department (CAD), Singapore's white-collar crimebusters, this week launched a wide operation that has so far reached at least seven companies and 11 individuals as part of an investigation into suspected trading irregularities in the shares of Asiasons Capital, Blumont Group and LionGold Corp.