SGX RegCo refers Mirach Energy to authorities as 'single omnibus trading account' continues to drive share price surge

SINGAPORE (Nov 5): Singapore Exchange Regulation (SGX RegCo) says it has referred the unusual trading of shares in mainboard-listed Mirach Energy to the authorities for their “necessary actions”.

In a regulatory filing on Tuesday, the market regulator once again urged investors to exercise caution when dealing in the shares of Mirach.

The warning comes shortly after SGX RegCo issued Mirach with its second query in the span of a month. The query, which was issued at 9.22am, was prompted by a 41% surge in the company’s share price to 36 cents just after market open on Tuesday.

SGX RegCo notes that between Sept 25 and Nov 5, the share price of the company had risen from 14 cents to a high of 37 cents – denoting a surge of 164%.

“Despite Mirach’s negative response to the query [on Oct 18], the share price of Mirach continued to climb. A second query was issued on Nov 5, but they have responded negatively to that as well,” says SGX RegCo.

“That the unusual share trading in Mirach has continued relatively unabated is of concern to SGX RegCo,” it adds.

In its review of the company’s trading activities, SGX RegCo had reportedly discovered that a single omnibus trading account was responsible for 88.7% of buy volume in the company between Oct 7 and Nov 5.

“SGX RegCo understands that four individual trading accounts were behind the omnibus trading account,” says the regulator, adding that it has since directed the relevant trading member to place trading restrictions on these accounts in respect of shares of Mirach.

The market regulator this morning had asked Mirach to declare whether the company was aware of any information not previously announced that might explain the “unusual price movements” in its shares.

It also asked if the company was aware of any other possible explanation for the trading, including the public circulation of information by rumours or reports. The company was also ordered to confirm that it remains in compliance with listing rules.

In its response at 5.30pm after market close, Mirach said that it was unaware of any information not previously announced concerning the company, its subsidiaries or associated companies which could explain the trading today.

Mirach also added that it would make the necessary disclosures at the appropriate time, and confirmed its compliance with the SGX listing rules.

Prior to this, Mirach had also triggered a similar SGX query on Oct 18, after a 39% surge in its share price within the span of half an hour. To this query, Mirach had also said it was unaware of any information or explanation for the unusual price movements.

Uma Devi, The Edge