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Singapore “Flyer” of the Week: SMRT Corporation Limited

This week’s Singapore “Flyer” is SMRT Corporation (SGX: S53). The shares of the transport operator gained 19.1% during the week up till Thursday. On Thursday itself, SMRT ballooned 18.5% to close at $1.215. In the previous week, the shares last changed hands at $1.02.

No material news was released by the company to back up the surge in stock price and it is baffling considering that SMRT was just recently languishing at price levels not seen since 2006. The abnormal occurrence caused the stock exchange operator and regulator Singapore Exchange to issue a “trade with caution” warning on the stock after the markets closed on Thursday.

In response, SMRT said that “it was not aware of any reasons that could possibly explain the trading in its securities”.

Singapore Exchange went on to say that it will investigate all possible wrongdoings and will work with the appropriate regulatory agencies to pursue any relevant actions to maintain a fair, orderly and transparent market.

At one point in time on Thursday, shares of SMRT were as high as S$1.24, representing an intra-day gain of 21%. Another transport operator, SBS Transit (SGX: S61), also showed a strong increase in its share price as it gained 7.6% to finish off yesterday at $1.27.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.