Does anybody know what is happening to Sino Construction shares? It has plunged from 0.26 (opening price on 2 Mar) all the way down to 0.032 as at today's close (13 Mar). That's a tremendous drop of 88 %. i.e today's closing price is only 12 % of what its price was 2 weeks ago. I do not seem to be able to find any information anywhere that can relate to this sudden fall. And also, it is a bit strange why the SGX never questioned the management over this sudden drop.
Last edit: 9 years 8 months ago by Aquarius. Reason: typo error
@ Geo
Many thanks for your reply. Yes, that has been reported. And also the new management has indicated a change in direction of business strategy,to adopt construction of micro power plants as the main income generator and dropping off investments in mineral assets which they think are going through a difficult patch (their announcement dated 4 Mar) .
But that alone does not explain why on at least 2 occasions the share price dropped by about 50 %. The SGX was supposed to have a circuit breaker that would kick in for counters which registered such a large drop but nothing happened. But strangely no query, and no reply.
In the first place, why was there a need for a change in management and a change in corporate direction? I am not vested in this counter but just can't help thinking that something is amiss that required this "coup" to take place.
In today BT "Loss of market confidence here - just look at cases such as Sino Construction."
The question is not why the company's share price recently collapsed - but why it has taken so long. Are there more such cases to come? By Mak Yuen Teen. The writter is an associate professor at NUS Business School where he teaches corporate governmance and ethics.
The ending article: The question in Sino Construction's case is not why the share price recently collapsed - but why it has taken so long. It stakholders are wondering why there is a loss of market confidence here, they need to look no further than at cases such as Sino Construction. Investors must be concerned as to whether there are more such cases to come.
