Singapore Exchange Regulation (SGX RegCo) has issued a “trade with caution” warning on ISOTeam as the market regulator found that a small group of accounts were responsible for over 71% of the traded volume in the company’s shares between Sept 24 and Nov 24.
The same group of accounts was responsible for over 83% of the buy trades during the surge on Sept 24, revealed a review conducted by SGX RegCo.
“The individuals in these accounts appear to be connected to each other,” it says.
The same accounts appeared to have traded among themselves during the two-month period, which accounted for 55.05% of on-market traded volume.
Within the period reviewed, the accounts engaged in trading among themselves on 41 of the 44 trading days in total.
Shares in ISOTeam surged to 14.9 cents on Sept 24 from 13.9 cents the day before. Its shares have remained steady at 14.7 cents since.
The share price movement occurred amid the release of its FY2020 results ended June on Oct 30.
The company reported a loss of $21.49 million for the year, compared to a profit of $6.3 million previously.
SGX RegCo says it is further reviewing the trades in ISOTeam’s shares and will take “necessary action” if necessary.
Shares in ISOTeam closed flat at 14.7 cents on Dec 3.