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Originally Posted by cbkia View Post
THE Singapore Exchange (SGX) was justified to " designate" the three listed stocks - Blumont Group, Asiasons Capital and LionGold Corp.
Had the regulator exercised greater vigilance, been more discerning and not content with standard replies issued by listed firms to queries, and stepped in to investigate matters when price increases continued unabated, the problem would not have escalated this far. It appears that the SGX's action came too late.
We agree with senior correspondent Goh Eng Yeow (" Confusion continues over trading curbs on 'designated' stocks" Wednesday) that the confusion and disarray that followed are cause for concern and unhappiness among remisiers and investors.
Many attributed this to the lack of clarity in instructions by the SGX. As a result, interpretation among broking houses differed. Even within the same firm, interpretation was ever changing.
Under SGX guidelines, despite the upfront payment, investors cannot sell until after the due date, which is four days later.
Meanwhile, clients cannot react to market dynamics. Only investors who still believe in the stock and plan to hold it for the long term will buy, and the rest may not. Hence, demand would be gravely curtailed and this would further contribute to sliding share prices.
Currently, owing to the confusion, many clients have sold these securities before the due date. They now run the risk of a possible buying-in with fines for short-selling, unless the SGX makes an exception to the rule for these trades.
We are baffled by this guideline, given that the SGX securities trading rulebook has a directive for " designated" stocks under 8.8.2(2) of Section C, which provides " a restriction on all dealings to immediate bargains" .
" Immediate bargains" are defined as transactions for delivery at the trade date, and the securities shall be credited to the investor's Central Depository (CDP) account by 3pm the next day. This arrangement is straightforward and a tidy way to deal with such " designated" securities effectively.
Compounding matters, clients are now required to show satisfactory evidence that they own the " designated" security, either with the CDP or other custodians, before they are allowed to sell.
Clients are further upset over this new ruling, which is onerous, impractical and illogical. The SGX's handling of the situation, so far, has been amateurish.
Jimmy Ho Kwok Hoong
President
The Society of Remisiers (Singapore)
Risky leiu..want to sell any of the stocks designated must show u have possessions by way of cdp or other evidences...
shadowmoon ( Date: 11-Oct-2013 16:16) Posted:
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Among the 3, Asiasons the worst of all.
The price swing even BIGGER
shadowmoon ( Date: 11-Oct-2013 15:00) Posted:
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u buy too early.....now at 0.168
expertinvestor ( Date: 11-Oct-2013 15:10) Posted:
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Looking at these three counters, it is as if they are fighting to see who can go at the lowest.
Like that jialat oreli. Hard to see sunshine coming soon man!!!!
better stay away for the moment..
Damn... A little too late. But got LionGold at $0.177
Dropping like siao...interesting
Look like the bleeding of these three counters has not stopped. Sigh!!!
Rushing down to UOB KH for liongold
Seem like somone shotting liongold... vol quite big in placement..
Today still got few investors spending 1.2cents to buy 900lots.of lion gold wrt....excercise.price at $1.17..I think bet mother than.wrt..premium.too high to bet....
Singapore Exchange to Adopt Circuit Breakers by Early Next Year
Oct. 10 (Bloomberg) -- Singapore Exchange Ltd., Southeast
Asia?s biggest bourse, plans to add circuit breakers by early
next year after a plunge in shares of three commodity companies
erased $6.9 billion in market value over three days.
Under the proposal, trading of a stock will be halted for 5
minutes if it breaches 10 percent in either direction, the
exchange said in an e-mailed response to queries. The bourse
sought public feedback on the plan in June, it said.
?We aim to introduce the dynamic circuit breakers by early
next year subject to regulatory approvals,? Joan Lew, a
spokeswoman for the exchange, said in the statement today.
The bourse operator imposed trading restrictions this week
on Blumont Group Ltd., Asiasons Capital Ltd. and LionGold Corp.
after their stock prices plunged. Trading caps to prevent sharp
gains or losses will give investors time to assess their
holdings, according to Liquidnet Holdings Inc. and the
Securities Investors Association of Singapore.
Regulators worldwide have evaluated safeguards since the
May 2010 plunge known as the flash crash briefly erased about
$862 billion from the value of U.S. equities. American exchanges
have implemented a limit-up/limit-down initiative that prevents
market makers from quoting shares at prices deemed too far above
or below current levels.
The Singapore exchange said Oct. 6 that shares of the three
companies have been declared designated securities, prohibiting
investors from selling them unless they hold the same quantity
of stock. Buyers must make cash payments for the transactions,
it added.
Exchange Probe
The bourse said in a separate statement today there were
short sales on Blumont and Asiasons on Oct. 7, contrary to
trading directions it gave after classifying them as designated
securities.
?We will be investigating these cases and take the
appropriate disciplinary actions as necessary,? Kelvin Koh,
head of market surveillance at the Singapore Exchange, said in
the statement. ?SGX will continue to monitor closely the market
in the three designated securities. We will assess the trading
conditions and lift the designation as soon as it is appropriate
to do so.?
Regulators around the world have stepped up oversight of
capital markets after the global financial crisis in 2008. The
Monetary Authority of Singapore established a 13-member council
in 2010 with the goal of boosting corporate governance standards
and investor confidence.
Blumont, Asiasons
Blumont, which invests in minerals and energy, slumped 94
percent over two trading days on Oct. 4 and Oct. 7. That shaved
S$4.9 billion ($3.9 billion) off its market value, prompting the
company to scrap a proposed S$146 million acquisition of
Australia?s Cokal Ltd.
Asiasons, which last month bought a stake in U.S. oil and
gas producer Black Elk Energy Offshore Operations LLC, tumbled
96 percent over the three trading days through Oct. 8, shaving
S$2.5 billion in market value.
LionGold, which said this week it?s in advanced
negotiations for a possible acquisition of Minera IRL Ltd., a
gold explorer in Peru, Argentina and Chile, plunged 87 percent
over the three-day period, wiping off S$1.2 billion in market
value.
The decision to introduce circuit breakers comes one month
after Everbright Securities Co. announced a 523 million yuan
($85 million) loss after $3.8 billion in erroneous trading
orders that roiled China?s equity market and drew a record
regulatory penalty that banned four executives from the market
for life.
Trading in the National Stock Exchange of India?s Nifty
index and some individual companies stopped for 15 minutes in
Mumbai a year ago after the 50-stock gauge tumbled as much as 16
percent. A brokerage that mishandled trades for an institutional
client was to blame, the exchange said then.
Markets including South Korea, India and Taiwan use circuit
breakers, while countries including Japan have daily price
limits depending on their value, according to CLSA Ltd.
Oct. 10 (Bloomberg) -- Singapore Exchange Ltd., Southeast
Asia?s biggest bourse, plans to add circuit breakers by early
next year after a plunge in shares of three commodity companies
erased $6.9 billion in market value over three days.
Under the proposal, trading of a stock will be halted for 5
minutes if it breaches 10 percent in either direction, the
exchange said in an e-mailed response to queries. The bourse
sought public feedback on the plan in June, it said.
?We aim to introduce the dynamic circuit breakers by early
next year subject to regulatory approvals,? Joan Lew, a
spokeswoman for the exchange, said in the statement today.
The bourse operator imposed trading restrictions this week
on Blumont Group Ltd., Asiasons Capital Ltd. and LionGold Corp.
after their stock prices plunged. Trading caps to prevent sharp
gains or losses will give investors time to assess their
holdings, according to Liquidnet Holdings Inc. and the
Securities Investors Association of Singapore.
Regulators worldwide have evaluated safeguards since the
May 2010 plunge known as the flash crash briefly erased about
$862 billion from the value of U.S. equities. American exchanges
have implemented a limit-up/limit-down initiative that prevents
market makers from quoting shares at prices deemed too far above
or below current levels.
The Singapore exchange said Oct. 6 that shares of the three
companies have been declared designated securities, prohibiting
investors from selling them unless they hold the same quantity
of stock. Buyers must make cash payments for the transactions,
it added.
Exchange Probe
The bourse said in a separate statement today there were
short sales on Blumont and Asiasons on Oct. 7, contrary to
trading directions it gave after classifying them as designated
securities.
?We will be investigating these cases and take the
appropriate disciplinary actions as necessary,? Kelvin Koh,
head of market surveillance at the Singapore Exchange, said in
the statement. ?SGX will continue to monitor closely the market
in the three designated securities. We will assess the trading
conditions and lift the designation as soon as it is appropriate
to do so.?
Regulators around the world have stepped up oversight of
capital markets after the global financial crisis in 2008. The
Monetary Authority of Singapore established a 13-member council
in 2010 with the goal of boosting corporate governance standards
and investor confidence.
Blumont, Asiasons
Blumont, which invests in minerals and energy, slumped 94
percent over two trading days on Oct. 4 and Oct. 7. That shaved
S$4.9 billion ($3.9 billion) off its market value, prompting the
company to scrap a proposed S$146 million acquisition of
Australia?s Cokal Ltd.
Asiasons, which last month bought a stake in U.S. oil and
gas producer Black Elk Energy Offshore Operations LLC, tumbled
96 percent over the three trading days through Oct. 8, shaving
S$2.5 billion in market value.
LionGold, which said this week it?s in advanced
negotiations for a possible acquisition of Minera IRL Ltd., a
gold explorer in Peru, Argentina and Chile, plunged 87 percent
over the three-day period, wiping off S$1.2 billion in market
value.
The decision to introduce circuit breakers comes one month
after Everbright Securities Co. announced a 523 million yuan
($85 million) loss after $3.8 billion in erroneous trading
orders that roiled China?s equity market and drew a record
regulatory penalty that banned four executives from the market
for life.
Trading in the National Stock Exchange of India?s Nifty
index and some individual companies stopped for 15 minutes in
Mumbai a year ago after the 50-stock gauge tumbled as much as 16
percent. A brokerage that mishandled trades for an institutional
client was to blame, the exchange said then.
Markets including South Korea, India and Taiwan use circuit
breakers, while countries including Japan have daily price
limits depending on their value, according to CLSA Ltd.
At the end of the day...shares should trade around.nav..blumont..4cents...asiason 18 cents....liongold 25cents....
Quiet.surprise.to.see so few sellers...
Profit taking.in process.for those bought.on monday...buy if below ten cents
Best to give these 3, an arm length distance even with cheap cheap price becoz every day there are new discloses about hanky panky happening for the huge gap down. The authority must wake up one day soon and investigate all 3. In order to confirm once and for all....esp for those who lost their shirts and their own reputation.
edwinjup ( Date: 11-Oct-2013 07:54) Posted:
|
World class stock exchange actions very slow....sias may help .
Blumont captain jump ship so fast..better carry on monitor....asiason and liongold...the loyal follower ans poor investor of blumont...can lift
Blumont captain jump ship so fast..better carry on monitor....asiason and liongold...the loyal follower ans poor investor of blumont...can lift
risktaker ( Date: 11-Oct-2013 07:39) Posted:
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SGX may lift its designated status for this 3 counters..... as price has been relatively stable ....
Today...profit taking expected as some bought blumont.and asiason below current price on monday...lion..bleeding for those bought on monday...so.pressure lesser..I think....