Trading Curb Lifted for Erratic Trio

TStockMarketBoardhe erratic trio of Asiasons Capital Limited (SGX: 5ET), Blumont Group Limited (SGX: A33) and LionGold Corp Limited (SGX: A78) will no longer be deemed as designated securities from Monday, 21 October 2013 at 0830 hours.

Singapore Exchange (SGX) has mentioned that “trading in these stocks has since become more stable”.

It went on to add that “It is important for market forces to determine share prices in fair and orderly trading. The designation of the stocks and its ending are done in the interest of the investing public and the market. SGX will continue to monitor closely the trading activities in the marketplace. The investing public is advised to trade with care and caution.”

Designated securities come tagged with some restrictions. Short-selling and contra-trading will not be allowed. Despite the ban on short-selling, SGX found some still shorting the stock.

Furthermore, the restrictions created some confusion amongst those who had bought the stock. Even though the person had bought the stock and had paid for it, he or she was not allowed to sell it until after the stocks have been deposited into a Central Depository Account. This would be after four days of purchasing. Any attempt to sell before that would constitute as a short-sell. Probably, the short-selling that SGX uncovered was due to the confused traders who sold their stocks inadvertently.

Currently, shares in Asiasons, Blumont and LionGold are priced at $0.128, $0.133 and $0.153 respectively.

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