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Wednesday, 21 October 2009
Trading curb talk sends Transcu stock reeling
The wind was knocked out of the stock of bio-medical company Transcu Group yesterday as talk of a trading restriction by UOB-Kay Hian - which has since been imposed - ignited a heavy dumping of its shares, sources told BT.
UOB-KH imposing trading restriction on counter from today: sources
By JAMIE LEE 21 October 2009
The wind was knocked out of the stock of bio-medical company Transcu Group yesterday as talk of a trading restriction by UOB-Kay Hian - which has since been imposed - ignited a heavy dumping of its shares, sources told BT.
Shares of Transcu opened unchanged at 19.5 cents and made a slight gain of half a cent in the first 15 minutes of trading.
But from there on, the stock made a swift nose-dive, with most of the heavy selling done in the afternoon trading session.
By the end of the day, the stock had plunged 20.5 per cent, or 4 cents, to 15.5 cents and was the most heavily traded counter on the market, with 218 million shares changing hands. The day saw its market value drop some $69 million to $267 million.
‘I got a call saying, ‘if you have loved ones holding on to this stock, tell them to get rid of it now’,’ said one source.
Sources who declined to be named said UOB-Kay Hian - Singapore’s largest brokerage - announced the trading restriction from today to the trading room over the PA system around 5pm yesterday.
With this trading restriction, any investor who buys at least $30,000 worth of Transcu shares must put down a deposit, said one source. One observer saw this as effectively a ban on contra trading for the counter.
The exact reason for the trading restriction was unclear, though brokers were told that the house’s trading exposure on the stock was too high for this penny stock.
The source added that this move by UOB-Kay Hian has sparked talk on whether the other brokerages would follow suit.
The stock had been hit in early-September this year by another severe sell-down. The counter similarly lost one-fifth of its market value following a series of married deals.
Out of the 53 million shares traded then, about half - or some 24 million units - were traded through married block deals at 14.5 cents and 15 cents. The stock closed 4 cents lower at 15 cents that day.
Shares of Transcu have plummeted 75.62 per cent since the start of the year, against the 48.17 per cent gain by the Straits Times Index.
When contacted, the company declined to comment on the share plunge.
Transcu - which makes trans-dermal patches that can deliver drugs via the skin - has been on a fund-raising trail.
It said last week that it would raise $29.4 million through a share placement.
This follows an issue of up to $80 million of one per cent convertible notes to subscriber Advance Opportunities Fund earlier this year.
Transcu - which was listed through a reverse takeover of Eng Wah Organisation - posted a net loss of US$7.27 million for the first quarter ended June 30, widening its losses from the US$5.28 million posted a year ago.
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Trading curb talk sends Transcu stock reeling
UOB-KH imposing trading restriction on counter from today: sources
By JAMIE LEE
21 October 2009
The wind was knocked out of the stock of bio-medical company Transcu Group yesterday as talk of a trading restriction by UOB-Kay Hian - which has since been imposed - ignited a heavy dumping of its shares, sources told BT.
Shares of Transcu opened unchanged at 19.5 cents and made a slight gain of half a cent in the first 15 minutes of trading.
But from there on, the stock made a swift nose-dive, with most of the heavy selling done in the afternoon trading session.
By the end of the day, the stock had plunged 20.5 per cent, or 4 cents, to 15.5 cents and was the most heavily traded counter on the market, with 218 million shares changing hands. The day saw its market value drop some $69 million to $267 million.
‘I got a call saying, ‘if you have loved ones holding on to this stock, tell them to get rid of it now’,’ said one source.
Sources who declined to be named said UOB-Kay Hian - Singapore’s largest brokerage - announced the trading restriction from today to the trading room over the PA system around 5pm yesterday.
With this trading restriction, any investor who buys at least $30,000 worth of Transcu shares must put down a deposit, said one source. One observer saw this as effectively a ban on contra trading for the counter.
The exact reason for the trading restriction was unclear, though brokers were told that the house’s trading exposure on the stock was too high for this penny stock.
The source added that this move by UOB-Kay Hian has sparked talk on whether the other brokerages would follow suit.
The stock had been hit in early-September this year by another severe sell-down. The counter similarly lost one-fifth of its market value following a series of married deals.
Out of the 53 million shares traded then, about half - or some 24 million units - were traded through married block deals at 14.5 cents and 15 cents. The stock closed 4 cents lower at 15 cents that day.
Shares of Transcu have plummeted 75.62 per cent since the start of the year, against the 48.17 per cent gain by the Straits Times Index.
When contacted, the company declined to comment on the share plunge.
Transcu - which makes trans-dermal patches that can deliver drugs via the skin - has been on a fund-raising trail.
It said last week that it would raise $29.4 million through a share placement.
This follows an issue of up to $80 million of one per cent convertible notes to subscriber Advance Opportunities Fund earlier this year.
Transcu - which was listed through a reverse takeover of Eng Wah Organisation - posted a net loss of US$7.27 million for the first quarter ended June 30, widening its losses from the US$5.28 million posted a year ago.
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