Thursday, January 1, 2009

Daily news - 31 Dec

CMT price hike appears to be due to hedging: SGX
CapitaMall Trust (CMT) – The Singapore Exchange yesterday said that the sudden spike in CMT share price on Monday appeared to be due to 'hedging activity' by an unnamed financial institution. On Monday, two million CMT shares were traded at $3 just before the market closed. That is 87.5 per cent above the previous closing price of $1.60. It was the stock's single largest daily gain and was its highest closing price since August. The trade added 22 points to the benchmark Straits Times Index, which closed up almost 55 points on Monday at 1,780.57. Yesterday, CMT shed most of the gains, closing at $1.64, down $1.36 or 45 per cent. The STI fell 9.92 points to 1,770.65. SGX said in its statement that it 'will investigate the possibility of any market misconduct and take up such action as may be necessary with the relevant authorities'. CapitaMall Trust said in a statement yesterday that it had not announced any new information and did not know of any other possible explanation for the trading. It was responding to a query from the exchange.

Source: Kim Eng

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