Hot stock: Golden Energy falls 27.2% on heavy trading, prompting SGX query

SHARES of Golden Energy and Resources (Gear) fell sharply on Tuesday (Nov 8) morning amid heavy trading, a week after news that the coal miner will be restructuring or exiting its energy coal business.

The counter began steadily falling after opening at S$0.92, reaching S$0.87 to represent a 3.3 per cent or S$0.03 decline as at 11 am with some 10.2 million shares traded. By 11.35 am, Gear had plunged further to S$0.77, down S$0.13 or 14.4 per cent with a total of 16.9 million securities changing hands.

The Singapore Exchange (SGX) issued a query at 11.37 am regarding the company’s “unusual” share price movements. 

The counter continued its decline to fall 27.2 per cent, or S$0.25, to pause at S$0.66 as at the midday trading break after 22.4 million shares were transacted. This represents Gear’s lowest trading level since Aug 30. 

No married deals were recorded in early trade, according to ShareInvestor data. 

Gear, which is owned by Indonesia’s Widjaja family, had announced on Nov 1 that it was planning to restructure or exit all or most of its energy coal business. 

The company more recently on Nov 3 announced it paid a deferred consideration of US$100 million as part of its sale and purchase agreement to acquire an 80 per cent interest in Stanmore SMC.