Tell investors why CPFIS stock Chasen crashed

WHEN Chasen Holdings' shares plummeted almost 19 cents or 54 per cent on Wednesday to 15.9 cents, in heavy volume of 58 million shares, conventional market wisdom was that the selling must somehow be connected to the recent crashes suffered by three stocks classified as "designated securities" by the Singapore Exchange (SGX) - namely Asiasons Capital, Blumont and LionGold.

Market players, however, were at the time unclear as to the exact nature of this connection. Apart from speculation that Chasen too might soon be designated by the exchange, no one had much to offer in the way of useful information.

Since then, the more popular theory which has emerged is that there was forced selling suffered by a large shareholder or broker to cover losses elsewhere, though no disclosures of this nature have yet been made.