A mirage? SGX RegCo urges caution on Mirach's surge

SINGAPORE Exchange Regulation (SGX RegCo) has once again urged investors and potential investors to exercise caution when dealing in the shares of Mirach Energy, flagging that a small group of individuals were responsible for nearly 90 per cent of the buy volume of the stock for about a month.

It first flagged its concerns on Sept 24, following which Mirach's share price fell, only to rise significantly again. Between Sept 25 and Nov 5, the share price shot up from 14 Singapore cents to a high of 37 cents.

During that time, SGX RegCo queried Mirach on the unusual movements of its share price, first on Oct 18 and again on Nov 5. Both times, Mirach responded to say it was unaware of any information or possible explanation for the trading.

That the unusual share trading in Mirach has "continued relatively unabated is of concern", SGX RegCo said on Tuesday after market close.

It has determined that a single omnibus trading account - purportedly backed by four individual trading accounts - accounted for 88.7 per cent of the buy volume in Mirach between Oct 7 and Nov 5. The regulator has also directed the relevant trading member to place trading restrictions on those four accounts in respect of Mirach's shares.

In addition, SGX RegCo has referred the matter to the authorities for their "necessary actions".

Mirach, which is on the SGX watch-list, was granted a 15-month extension in April to exit the list by June 5, 2020. The company is on the watch-list under both the financial entry and the minimum trading price criteria. Its business units are engaged in oil and gas investments and operations, property and construction, as well as the development and management of agriculture land.

For the full year ended Dec 31, 2018, it reported a net profit of S$91,000, versus a loss of S$9.52 million previously. The counter closed at 25 cents on Tuesday, down 3.85 per cent, or one cent.

Lynette Tan, Business Times

06 November 2019