- POSTED: 24 Apr 2014 20:09
Shares of SMRT soared on Thursday, prompting the Singapore Exchange (SGX) to issue a "trade with caution" warning on the stock.
SINGAPORE: Shares of SMRT soared on Thursday, prompting the Singapore Exchange (SGX) to issue a "trade with caution" warning on the stock.
SMRT shares closed 19 percent higher at S$1.215 apiece, while SBS Transit -- the smaller of Singapore's two rail operators -- gained 7.6 percent to end the day at S$1.27.
Responding to a query from SGX, SMRT said after the market close it was not aware of any information that had not been previously announced which might explain the trading.
"In view of the trading activities observed and the Issuer's response, shareholders and potential investors should exercise caution when dealing in the securities," SGX said.
"The exchange will investigate all possible transgressions and will work with the relevant regulatory agencies to pursue actions to maintain a fair, orderly and transparent market," it added.
The Land Transport Authority (LTA) last week called a tender for a consultant to help it effectively manage its Rapid Transit System (RTS) assets.
This was in line with the New Rail Financing Framework, first adopted in 2010, whereby LTA would have full ownership and control of the RTS infrastructure and operating assets like trains.
The framework already applies to the recently opened Downtown line, and authorities have been in discussions with the operators of older lines on transiting to the new arrangement.
SMRT will release its results for financial year 2013/14 next Wednesday.