Hot stock: Leader Environmental Tech tumbles 17.3% on CAD probe of two execs

SHARES of environmental solutions provider Leader Environmental Technologies LS9 tumbled in early trading on Friday, following news of two executives' involvement in a Commercial Affairs Department (CAD) probe on insider trading.

The company's shares plunged 37.3 per cent or 4.1 Singapore cents to an intraday low of 6.9 cents right when the market opened.

By 11.28am, the counter recovered slightly and was trading 17.3 per cent or 1.9 cents lower at 9.1 cents. It was also the most heavily traded by volume at the time, with 43.8 million shares changing hands.

Leader Environmental Tech said late on Thursday that executive chairman and chief executive Lin Yucheng, as well as deputy chief technology officer Guo Chenghong each received a letter dated July 7 from the Singapore Police Force, Monetary Authority of Singapore and CAD informing them of the investigations.

Both had to attend interviews with the CAD and surrender their travel documents as part of police investigations as there had "arisen reasonable grounds for believing that they had committed an offence". Dr Lin and Dr Guo also had certain electronic devices seized, including mobile phones and laptops.

Leader Environmental Tech said its business and operations are not affected by the investigations and will continue as normal.

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes