SGX issues trade with caution on UE

The Singapore Exchange issued a "trade with caution" on United Engineers on Friday after querying the company on a 7.52 per cent surge in its share price on Thursday. -- PHOTO: LIM YAOHUI FOR THE STRAITS TIMES
The Singapore Exchange issued a "trade with caution" on United Engineers on Friday after querying the company on a 7.52 per cent surge in its share price on Thursday. -- PHOTO: LIM YAOHUI FOR THE STRAITS TIMES

SINGAPORE - The Singapore Exchange issued a "trade with caution" on United Engineers on Friday after querying the company on a 7.52 per cent surge in its share price on Thursday.

SGX also highlighted that this is the third query on unusual trading activities in UE's shares in the past six months.

Mainboard-listed UE earlier responded on Friday that other than the announcements relating to discussions by controlling shareholders previously announced in August last year and February this year, "it was not aware of any other reasons that could possibly explain the trading in its securities".

The group had disclosed previously that its controlling shareholders, Oversea-Chinese Banking Corporation Ltd and Great Eastern Holdings Ltd, have been approached by a party in connection with a possible transaction relating to their combined stakes in UE and WBL Corporation Ltd. It had said that this may or may not lead to an offer for the shares of the group and WBL.

The SGX said on Friday that shareholders and potential investors should exercise caution when dealing in UE shares.

UE shares were trading down 13 cents or 3.96 per cent, at $3.15 at 9:25am on Friday. The Straits Times Index was trading down 4.14 points, or 0.12 per cent, at 3,415.03.