Blumont, Asiasons plunge after trading resumes; firms request trading halts

The Singapore Exchange Ltd. logo is displayed in the lobby of SGX Centre 1 in Singapore, on Wednesday, Oct 27, 2010. Shares in Blumont Group and Asiasons Capital plummeted on Monday morning after the Singapore Exchange (SGX) lifted their trading
The Singapore Exchange Ltd. logo is displayed in the lobby of SGX Centre 1 in Singapore, on Wednesday, Oct 27, 2010. Shares in Blumont Group and Asiasons Capital plummeted on Monday morning after the Singapore Exchange (SGX) lifted their trading halts on Sunday. -- ST FILE PHOTO: MUNSHI AHMED

Shares in Blumont Group and Asiasons Capital plummeted on Monday morning after the Singapore Exchange (SGX) lifted their trading halts on Sunday.

Blumont Group fell some 87 per cent at one point to hit a low of 11.5 cents, before clawing back some gains. As at 10.50am, the counter was trading at 29 cents, down 67 per cent.

Asiasons tumbled 87 per cent at its open to 10.2 cents, but also regained some value to 22 cents as at 10.50am.

Both companies requested trading halts. In a statement, Blumont said the company had had insufficient time to address shareholders given that the counter was suspended from trading on Friday and had the suspension lifted on Sunday.

"The company has no chance to explain to shareholders the company's position and plans as... the Sunday lifting of trading does not give company ample time to address its investors," it said.

It added that the trading curbs placed on the counter by the SGX on Sunday, which prohibit short-selling and require investors to pay cash upfront to buy the stock, would lead to forced selling.

The announcement to resume trading "was only put up on the SGX website on a Sunday evening - which does not give enough time for investors to top up cash into their accounts," the company said. "The trading houses will have to implement force selling measures after Friday's suspension."

Blumont requested a trading halt until the close of business on Wednesday for it to release information to the public.

Asiasons meanwhile also requested a trading halt at 8.25am on Monday morning but then asked to lift the suspension at 9.09am.

A third counter that was suspended on Friday but allowed to resume trading Monday was Liongold. It requested a trading halt at 8.30am on Monday pending an announcement.