Oct 22, 2013

    Commodity stocks trio surge after curbs lifted

    BLUMONT Group, Asiasons Capital and LionGold Corp surged after the Singapore Exchange (SGX) ended restrictions imposed on the commodity stocks.

    Blumont jumped more than 65 per cent to 24 Singapore cents, the biggest gain in more than four years.

    Asiasons rose 76 per cent, and LionGold climbed 60 per cent.

    The shares slumped at least 87 per cent in the three trading days through Oct 8, wiping US$6.9 billion (S$8.6 billion) from the combined market value of the companies.

    SGX declared them designated securities on Oct 6, meaning investors were barred from selling the shares unless they held the same quantity of stock.

    "The designation of the stocks and its ending are done in the interest of the investing public and the market," the exchange said on Friday. "SGX will continue to monitor closely the trading activities in the marketplace."

    The lifting of the restrictions is because trading has become more stable, Mr Kelvin Koh, head of market surveillance at SGX, said at a media briefing.

    Asiasons tumbled 96 per cent over the three trading days through Oct 8, while LionGold plunged 87 per cent over the same period. Blumont, which invests in minerals and energy, slumped 94 per cent over two trading days on Oct 4 and Oct 7.

    SGX plans to add circuit breakers by early next year, it said after the shares plunged.