Delong's 8.6% share surge prompts SGX query

STEEL manufacturer Delong Holdings has received yet another trading query from the Singapore Exchange (SGX) on Monday. This is the second query the company has received this month on the back of unusual price movements in its share price.

As at 10.30am, Delong shares were trading up 8.6 per cent or 28 Singapore cents at S$3.52 apiece, making it one of the top 20 gainers on the Singapore bourse.

Delong had previously entered into a binding memorandum of understanding on May 10 to bid for a 51 per cent stake in Anhui Shoukuang Dachang Metal Materials Ltd Co, a maker of steel bars and wire rods.

As part of the agreement, Delong paid the vendor, a state-owned entity, 10 million yuan (S$2 million) as a guarantee that it will take part in a bidding exercise for the target stake.

The outcome of Delong's bid for the Chinese steelmaker is not yet known.

Delong shares closed 28 Singapore cents or 8.6 per cent up at S$3.52 on Monday.