Invest Positively

Erroneous reporting by Goh Eng Yeow to write that MSCI would be dropping the trio from the prestigious market benchmark. The trio are still in MSCI indices.

Algo Capital’s mailing address is in Bishan, which is the residential address of its owner and chief executive Ken Tai Chee Ming.

Link

Heftier taxes, scrapping of easy financing will deter buyers, says RHB Research

The fallout from the penny stock debacle involving Blumont Group, Asiasons Capital and LionGold Corp continues as more stakeholders head to the courts.

The legal action being taken against Goldman Sachs could throw new light on the $8 billion share meltdown in Blumont Group, LionGold Corp and Asiasons Capital last month.

Global broking giant Interactive Brokers has launched the largest legal action so far in the wake of October’s penny stock collapse, taking aim at at least 10 clients as it seeks to recover about US$68 million of losses.

Blumont director says bank breached duty by force-selling his shares

Link

Shares of commodity firms Noble Group, Olam International and Wilmar International have lagged the broader market over the last three years. But sentiment seems to be turning.

The commodity supplier responded to short-selling attacks by reducing its capital expenditure and lightening its balance sheet. That could spell slower growth, but it might also boost the company’s profitability and cash flows. Is it safe to get back into the stock?

Singapore Exchange Ltd (SGX) said on Friday it had split the role of its regulatory and risk chief officer, a move that follows a penny stock crash that raised questions about the firm’s regulatory abilities.

Ipco International CEO Quah Su-Ling is taking a unit of Goldman Sachs to court for losses suffered during the collapse of Asiasons Capital, Blumont Group and LionGold Corp early last month. According to legal papers filed on Nov. 20 with the High Court in the UNK and seen by The Edge Singapore, the case revolves around a loan that Quah took from the bank to buy shares in two of these companies.

Link

When contacted by The Business Times last night, the 49-year-old said one of the main reasons for her stepping down was to pursue legal action against Goldman Sachs International and Goldman Sachs Singapore.

To say that that the penny stock segment of the Singapore market has pulled back would be an understatement - crash landed and still smouldering would be a more apt description.

The dust has yet to settle after the collapse last month of Blumont Group, Asiasons Capital and LionGold Corp, but at least one brokerage firm initially said to have suffered substantial losses from trades linked to the stocks has disclosed its exposure.

At Yangon International airport, large blue and white signs in the arrival and departure halls promote Singapore’s stock exchange as the go-to destination for Myanmar businesses seeking capital.

AMMB clears air on its brokerage here but traders say figure may rise

Contra trading, share of penny stocks among issues that need addressing

The Singapore Exchange (SGX) is mulling new rules on penny stocks after last month's meltdown in these counters caused huge losses to some investors.

He also highlights price swings distorting thresholds requiring shareholders’ nod

Vincent Khoo Letter to Editor, Business Times 08 November 2013

A US-based hedge fund called Platinum Partners, and entities linked to it, had agreed to provide US$560 million in funding to Asiasons Capital, Blumont Group and LionGold Corp in August, September and October as shares in the three companies peaked strongly and then crashed spectacularly.

In tracing the sudden collapse of the shares of three listed Singapore-based companies with reported Malaysian links, The Edge cast a spotlight on US hedge fund Platinum Partners Value Arbitrage Fund’s role had in inflating share prices beyond their value.



There is a sense of painful resignation, infused with no small amount of frustration and even impending doom among retail players and their brokers following news that the Singapore Exchange (SGX) is pressing ahead with plans to introduce high-frequency trading (HFT) to the local equities market. Since it appears to be a question of when and not if, the exchange should address the myriad issues before opening its doors to a mode of trading that is controversial and has yet to prove beneficial to markets as a whole.

Clearer communication can help in curbing speculation without using a heavy hand

Broking houses impose stiff curbs on purchases amid price gyrations

The penny stock debacle has cost many local investors dearly and left some facing legal action from brokers and banks determined to get their money.