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SGX queries Parkson Retail Asia on heavy trading volume

THE Singapore Exchange (SGX) on Thursday afternoon queried Parkson Retail Asia about the “unusual volume movements” in the trading of the watch-listed department store operator’s shares, which was nearly four times its average three-month volume.

On Thursday, some 8.83 million shares in Parkson Retail had changed hands, accompanying a 180 per cent or 1.8 Singapore cent surge in the counter's share price to S$0.028.

In contrast, the monthly average of the company’s cumulative trading volume in the last three months was 2.48 million shares. This is around a quarter of the number traded on Thursday.

The total daily volume traded was just 240,000 shares on Wednesday and 963,000 shares on Tuesday.

On Thursday afternoon, SGX asked whether Parkson Retail knew of any possible explanation for the trading, including public circulation of information by rumours or reports.

The bourse operator also asked the company to confirm its compliance with mainboard listing rules.

On Thursday night, Parkson said in a filing that it is not aware of any explanation for the unusual movements, and that it is in compliance with listing rules. 

Parkson Retail joined the SGX watch-list on Dec 5, 2018, for not meeting the minimum trading price entry criterion.

Its latest public announcement was released on May 15, on its unaudited financial results for the third quarter ended March 31. The company posted a net loss of S$5.39 million for that quarter, narrowing from a year-ago loss of S$8 million.

Parkson Retail appointed a new chief financial officer (CFO), Chua Tian Pang, on March 1, after the previous incumbent, Chia Cang Yang, resigned on Nov 4.

Its chief executive officer (CEO), Larry Michael Remsen, had earlier quit on Dec 21 to relocate to the United States for family reasons, according to a bourse filing. The company has not announced the appointment of a new CEO.

Parkson Retail has department stores across Malaysia, Vietnam, Indonesia, and Myanmar.