Hot stock: Yoma Strategic falls 8.8% after reply to SGX queries on chairman in Myanmar custody
SGX had asked if Serge Pun’s presence in the capital and his meetings with the authorities had any impact on Yoma’s financials, operations and businesses
SHARES of Yoma Strategic fell 8.8 per cent on Friday (Jul 19) morning, following its responses to questions from the Singapore Exchange Securities Trading (SGX-ST) about claims that its executive chairman was in Myanmar junta custody over alleged violations of banking regulations.
The counter was down S$0.012 to S$0.125, with 2.6 million shares having changed hands at the opening bell.
By 9.38 am, Yoma was the most actively traded counter by volume, with 25.2 million shares transacted. Its shares were down 5.8 per cent or S$0.008 at S$0.129. No married deals were recorded in early trade, ShareInvestor data showed.
Earlier this month, Yoma issued a clarification on a report by news agency Myanmar-Now, which reported that Yoma chairman Serge Pun was summoned to Naypyitaw in early June and had since been detained along with eight senior employees of Yoma Bank and Yoma Land.
The report also cited an anonymous source, who “confirmed the 71-year-old tycoon is being held under house arrest as he faces unspecified charges”.
According to a Bloomberg report, Myanmar’s central bank announced that action would be taken against seven banks – including Yoma Bank – for granting housing loans that exceeded central bank limits under the country’s efforts to “stabilise the local economy”.
Yoma clarified that Pun is in Naypyitaw and has been meeting and cooperating with the relevant authorities on matters relating to the banking business.
SGX-ST’s queries
On Thursday, SGX-ST asked Yoma if his presence in the capital and his meetings with the authorities would have an impact on its financials, operations and businesses.
It also wanted to know whether investigations into Yoma Bank and the group’s dealings with it would impact its financials, including assets, operations and businesses.
In response, Yoma said Pun’s presence in Naypyitaw and his meetings with the relevant authorities have no impact on the group’s financials, businesses and operations.
This is because Pun has been able to communicate with chief executive Melvyn Pun, who manages the group’s day-to-day operations alongside other key management personnel and relevant business division heads, said Yoma.
It also said it does not expect the investigations into Yoma Bank and its dealings with the bank to have a material impact on its financials.
It noted that the company has not been provided with, and is unaware of, specific details relating to the investigation. Yoma also highlighted that it does not obtain loans from the bank.
Additionally, SGX-ST asked Yoma if Serge Pun had been detained or placed under house arrest.
It also asked the group to clarify if he and the other employees were able to leave Myanmar without notifying or seeking approval from the relevant authorities.
In response, Yoma said the company has not been told whether its chairman has been detained or placed under house arrest.
As of Friday, Pun remains in Naypyitaw, in accommodation provided by the authorities and cooperating with them, it said.
Yoma added that it is not aware of any specific restrictions or conditions imposed on Pun and the other employees.
But it highlighted that the parties do not have complete unrestricted use of their communication devices. They are expected to remain in the capital and stay in the provided accommodation until the authorities complete their queries.
