Apr 25, 2014

    SMRT unaware of reason behind stock's 21% surge

    SIINGAPORE'S main public transportation operator SMRT Corporation said it was unaware of a reason to explain why its shares climbed by as much as 21 per cent yesterday to a four-month high of $1.24.

    SMRT, in which Temasek Holdings has a 54 per cent stake, has struggled in recent years with ageing rail infrastructure while battling higher energy and wage costs, testing the sustainability of Singapore's public transport operating model.

    "The company is not aware of any information not previously announced concerning the company, its subsidiaries or associated companies which might explain the trading today," SMRT said in a statement after the market closed, in response to queries from the Singapore bourse.

    "The truth is there are actually no material announcements so far - the rise in price is just speculative," Maybank Investment Bank analyst Derrick Heng told the Wall Street Journal.

    SMRT earned 54 per cent of last year's revenue from rail operations, followed by 20 per cent from bus services, 12 per cent from taxi operations and the remainder from other activities, Thomson Reuters data shows.