Hot stock: SPH climbs 10.5% on heavy volume, hits four-month high

AS rumours of corporate restructuring swirled in the market, shares of Singapore Press Holdings T39 advanced on Friday amid active trading, prompting a query from the bourse operator.

They surged 10.5 per cent or S$0.11 to hit S$1.16 at around 11.08am, according to Shareinvestor data. The last time the counter closed at such levels was in late July this year. The stock sustained its rally on Friday afternoon, jumping to S$1.23 on a cum-dividend basis as at 3.38pm, up 17.1 per cent from Thursday's close.

Some 69.5 million shares had changed hands by then, making the counter the second-most traded by value on the Singapore bourse, and fifth by volume.

About 65 large trades - each valued at more than S$150,000 - were done during the morning trading session.

In a note on Friday, OCBC pointed out that the stock's volumes by 10.18am already exceeded 12 times of the 20-day average for this time of the day.

There have also been "market talks of some imminent corporate restructuring news around the corner", OCBC said, although it emphasised that it was unable to verify the accuracy of the source.

In a query published at 1.56pm, the Singapore Exchange (SGX) asked SPH if it was aware of any possible explanation for the unusual price and volume movements. If there is any information not previously announced concerning the group that might explain the trading, SPH should announce it immediately, SGX said.

The company replied at 3.38pm that it "regularly evaluates all opportunities across its portfolio with the objective of enhancing shareholder value, which may from time to time involve discussions with various parties and stakeholders".

SPH noted that there is no assurance that any transaction will materialise or that any definitive or binding agreement will be reached.

Meanwhile, on Wednesday, UOB Kay Hian (UOBKH) wrote: "The stock could have bottomed as there is divergence warning from the MACD (moving average convergence/divergence) that hints of a potential low."

"A bullish conversion and baseline crossover are likely. The overhead cloud resistance is relatively thin, hinting that prices could break through the cloud more easily," the brokerage said. These could increase the chances of the stock price moving higher, it added.

UOBKH on Wednesday said the potential upside target was S$1.17. Its institutional research team had a "hold" call and target price of S$1.12 at the time.

Last month, the stock briefly dipped below S$1. The first time it did so was on Oct 14 morning, after the board slashed dividends as the media and property group fell into the red. It fell again on Oct 29 to Nov 2, to close at around S$0.99 to S$0.995.

SPH, which publishes The Business Times, recommended a final cash dividend of one Singapore cent per share for its fiscal year ended Aug 31, 2020, down from 5.5 cents a year ago. The dividend is payable on Dec 18 after books closure on Dec 4.

Separately, the manager of SPH Reit, which is sponsored by SPH, announced on Wednesday that its non-executive director David Chia, 65, has resigned to pave the way for the "renewal of board members".

SPH Reit units also rose on Friday, gaining 1.9 per cent or 1.5 Singapore cents to trade at 81.5 cents as at 1.09pm.

Shares of SPH closed Friday at S$1.25, up 19 per cent, with 85.6 million shares changing hands. That represented over 5 per cent of SPH's issued and paid-up shares. The Newspaper and Printing Presses Act has, since 2002, prohibited any person from owning 5 per cent or more of a newspaper company without approval from the Minister for Communications and Information.