Yongnam explains 'unusual price and volume movements' of its shares

MAINBOARD-LISTED Yongnam Holdings has responded to earlier queries from the Singapore Exchange (SGX) over "unusual price and volume movements" in its shares. 

In its response on Friday evening, the specialist civil engineering firm said it was not aware of any information not previously announced concerning the group which might explain the "sudden sharp increase in share price and trading volume" of its shares.

In response to queries on other possible explanations, Yongnam flagged the existence of recent media and analyst reports about the planned facilities upgrading in the two integrated resorts (IR) estimated at S$9 billion.

In one of the reports by a local brokerage, Yongnam said it was named as one of the previous beneficiaries of the first IR development, and that it was "poised to benefit" from the expected rise in construction activities from the facilities upgrading, expected to "revive the construction sector" and other related sectors locally.

This upgrading involves a fourth tower with a sky roof to Marina Bay Sands, three new hotels and a 15,000-seat entertainment arena and extensions to Universal Studios Singapore.

The company added it also conducts regular reviews from time to time, looking at strategic options and business opportunities to enhance shareholder value.

"There is no assurance that any transaction will materialise from its strategic review and the company will make an appropriate announcement in the event of any material development," it added.

On Thursday, shares of the specialist civil engineering firm shot up 18.47 per cent to close at $0.186 apiece. Some 17 million shares were traded compared to 700,000 shares the day before. On Friday morning, the stock rose another 5.38 per cent to a three-month high of $0.196 as of 11.40am, with 15.6 million shares exchanging hands. This prompted the SGX to query Yongnam on the unusual share price and volume movement.