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Jump in Hong Fok's share price prompts SGX query

PROPERTY developer Hong Fok said in response to a Singapore Exchange (SGX) query on Friday that it is not aware of any information not previously announced that could explain recent "unusual price movements" in its shares.

However, it noted that its share prices started trending upwards after it released its financial statement and dividend announcement for FY2018 on Feb 28. Hong Fok has also bought back its own shares several times in March, by way of market acquisitions in line with its share purchase mandate.

The company confirmed its compliance with the SGX listing rules.

In the SGX query about the price movements, issued on Friday morning, the regulator did not spell out the period in question nor the magnitude of the price change. The firm's share price was up about 6.42 per cent on Friday morning.

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SGX RegCo's head of surveillance Kelvin Koh asked the mainboard-listed company if it possessed any information that was not announced or if it was aware of any rumours that could explain the price movement of its shares.

"Such information may include events that are potentially material and price sensitive, such as discussions and negotiations that may lead to joint ventures, mergers, acquisitions or purchase or sale of a significant asset," Mr Koh said.

The Business Times noted that Hong Fok's share price rose 6.42 per cent to 99.5 Singapore cents on Friday morning in less than two hours of trading from the opening bell, making it one of the top 10 advancing stocks in terms of percentage. Further, the stock progressed about 15 per cent in trading price this week.

The stock price has been on an ascent since March 5 when it was trading at 72.5 Singapore cents, except for a dip on Wednesday when it announced a fixed-income offering of S$100 million.

In addition, trading volume hit over 4.6 million shares over Tuesday to Thursday, almost triple the 1.5 million shares moved on Monday.

Hong Fok closed at S$0.975 on Friday, up four Singapore cents or 4.28 per cent on a volume of 6.6 million shares.