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SIAS and SGX query ‘steep increase’ in Blumont share price

SINGAPORE — The Securities Investors Association Singapore (SIAS) has questioned an eight-fold jump in the share price of mainboard-listed investment firm Blumont Group this year, calling on the company to provide an “acceptable explanation” on the unusual stock activity.

SINGAPORE — The Securities Investors Association Singapore (SIAS) has questioned an eight-fold jump in the share price of mainboard-listed investment firm Blumont Group this year, calling on the company to provide an “acceptable explanation” on the unusual stock activity.

“We hope there is an acceptable explanation by the company,” said SIAS President and CEO David Gerald. “If not, SIAS calls on the relevant authorities to investigate this unusual stock activity immediately and let all stakeholders know the reasons for the unusual share price hike. Should the investigations reveal breaches of the law, then the full weight of the law must be brought to bear on the wrongdoers, if any.”

SIAS’ queries follow that of the Singapore Exchange (SGX), which earlier yesterday questioned Blumont on the “steep increase” of its share price.

Blumont’s share price has risen eight-fold to S$2.45 between Jan 2 and Sept 30, while its market capitalisation has increased 12.5-fold to S$6.3 billion during the period.

The firm’s announcements on acquisitions and investments in nine companies since December last year were mostly small and do not “sufficiently explain the steep increase”, the SGX said.

Trading of Blumont’s shares was halted for one-and-a-half hours yesterday after the SGX requested clarification on the matter. It closed down 0.4 per cent at S$2.44.

In response, Blumont said in a statement that it is not aware of any information not previously announced that might explain the increase and that it remains in compliance with the listing rules.

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