Hot stock: Hosen gets SGX query after shares surge 70.3%

SHARES of Catalist-listed Hosen Group surged 70.3 per cent during the morning trading session, prompting a query from the Singapore Exchange (SGX) about the "unusual price and volume movements".

In the afternoon, the packaged-food distributor's board replied that it was not aware of any information not previously announced which, if known, might explain the trading activity.

The board added it was not aware of any other possible explanation for the trading, and also confirmed its compliance with listing rules.

Before the SGX query, Hosen shares had jumped 2.6 cents or 70.3 per cent to 6.3 Singapore cents 11.45am. By the midday break, the counter had reached a five-year high of seven cents, up 89.2 per cent or 3.3 cents.

It was the fifth most traded by volume on the Singapore bourse as at 3.52pm on Thursday with 39.1 million shares changing hands. The shares were up 1.9 Singapore cents or 51.4 per cent to 5.6 cents by then.

The company imports, exports and distributes fast-moving consumer goods - specialising in packaged foods. Its brands include Hosen Quality, Hosen Select, Fortune, Highway and Sincero, to name a few.

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On Aug 5, the company posted a net profit of S$1.2 million for the six months ended June 30, 2020, nearly five times the S$235,000 a year ago.

Hosen's revenue was up 20.8 per cent on the year to S$40.5 million, from S$33.5 million. This was mainly due to higher demand of its products resulting from consumers stockpiling food during the "circuit-breaker" period in Singapore and the movement control order in Malaysia.