Hot stock: Leader Environmental Tech gets SGX query, halts trading after shares surge 29.5%

LEADER Environmental Technologies (LET) has called for a trading halt less than an hour after being queried by the Singapore Exchange (SGX) on Wednesday for "unusual price movements", following a 29.5 per cent surge in its share price.

The China-based investment holding company rose steadily from Wednesday's open to trade 1.9 Singapore cents or 19.6 per cent higher at 12 cents as at the midday trading break. It then continued its upward trajectory to hit an intraday high of 13 cents at 1.35pm.

In its bourse filing at 2pm, SGX asked LET if it was aware of any possible explanation for the trading activity, including any information not previously announced, or the public circulation of information by rumours or reports.

LET called for a trading halt with immediate effect at 2.37pm, pending the release of an announcement. Its last traded price of 12.3 cents represents an increase of 2.8 cents or 29.5 per cent after about 59.4 million shares worth S$6.6 million changed hands.

Some three million shares were transacted at S$0.09 each via a married deal as at 9.10am on Wednesday, according to Shareinvestor data.

LET's last announcement before the trading halt was on Jan 5 regarding the incorporation of two wholly-owned subsidiaries in China, namely United Greentech Investment, an intermediate investment holding company based in Guangzhou, as well as United Greentech (Tianjin). The latter was established as United Greentech Investment's subsidiary, and will be principally engaged in the business of municipal sludge treatment and management, industrial wastewater treatment and recycling, as well as other environmental-related projects.

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The incorporation of both subsidiaries is not expected to have any material impact on the net tangible assets per share and earnings per share of LET for the financial year ending Dec 31 2021, said the group in its filing with the bourse on Tuesday.