SINGAPORE Exchange Regulation on Tuesday urged investors and potential investors to exercise caution when dealing in the shares of Mirach Energy, flagging that a small group of individuals was responsible for nearly 70 per cent of the buy volume of the stock over a near-seven month period.
Mirach's share price has risen steadily from 13 Singapore cents on Feb 8 this year to 29 cents on Sept 3. Between Apr 29 and May 15, when the Straits Times Index fell 188.25 points or 5.53 per cent, the closing price of Mirach's shares rose from 16.3 cents to 19.7 cents, up 21 per cent. Between Feb 8 and Sept 20, Mirach's market capitalisation has increased by around S$18 million to S$44.5 million.
SGX RegCo said:"SGX's review of the trades in Mirach between Feb 8 and Sept 3 showed that a small group of individuals was responsible for over 69 per cent of the buy volume of Mirach shares. These individuals appear to be connected to each other." It added:"SGX RegCo is reviewing the trades in Mirach shares and will take the necessary actions, including referring the case to statutory authorities where warranted.
Mirach, which is on the SGX watch-list, was granted a 15-month extension in April to exit the list by June 5, 2020.