SGX RegCo issues 'trade with caution' alert on Metech International

SINGAPORE'S bourse watchdog has issued a "trade with caution" alert on Catalist-listed Metech International, and is reviewing trades in Metech shares.

That's as recent trades were driven by individuals who appear to be connected with one another, Singapore Exchange Regulation (SGX RegCo) said on Thursday (Jan 20).

SGX RegCo noted that Metech's share price surged by 51 per cent from Nov 1, 2021 to a high of S$0.375 on Dec 21, 2021, then fell by 44 per cent by Jan 19, 2022. In both cases, the price activity was in contrast with the direction of the benchmark Straits Times Index.

SGX RegCo also queried Metech on Dec 20, 2021 about "unusual volume movements in its shares", and was referred by Metech to a previous announcement on business diversification.

The watchdog has now found that a group of accounts was behind more than half of the buy volume in the November-to-December period, and more than half the sell volume afterwards.

"Individuals behind the group of accounts appear to be connected. The individuals within this group traded Metech shares with each other," SGX RegCo reported.

"SGX RegCo is reviewing the trades in Metech shares and will take the necessary actions, including referring the case to statutory authorities where warranted."

SGX RegCo is urging investors and potential investors to exercise caution when dealing in Metech shares.

Metech closed on Thursday at S$0.25, up S$0.04 or 19.1 per cent, with about 6.6 million shares changing hands, before the trading alert was issued.