Hot stock: Avarga receives SGX query after shares jump 33.1%

MAINBOARD-LISTED Avarga received a query from the Singapore Exchange (SGX) after its shares jumped 33.1 per cent or 5.1 Singapore cents to 20.5 cents as at 11.42am on Monday.

Avarga is an investment holding company with businesses in paper manufacturing, power generation, and building materials distribution.

The counter continued to climb to an intraday high of 22 Singapore cents by 1.04pm on Monday, up 42.9 per cent or 6.6 cents. As at 2.45pm, it stood at 21.5 Singapore cents, up 6.1 cents or 39.6 per cent, with 42.3 million shares changing hands.

SGX asked Avarga if it was aware of any information not previously announced concerning the company, its subsidiaries or associated companies which might explain the trading. It also asked the company to provide any possible explanation for the trading and confirm its compliance with listing rules, in particular mainboard rule 703.

On Aug 8, Avarga posted a 37 per cent drop in net profit to S$14.9 million from S$23.6 million a year ago for the six months ended June 30. Revenue was up 5 per cent to S$720.3 million from S$688.6 million, led by contributions from the group's building products business.