SINGAPORE - Singapore Exchange (SGX) has issued a trade-with-caution warning on The Stratech Group on Monday, when shares of the surveillance system company shot up to its highest.
The warning followed a query by SGX regarding the unusual volume movement, but Stratech said it was unaware of any reasons that could trigger the market reaction.
Stratech closed 36 per cent up at 3.4 cents on Monday. Over 90 million shares changed hands, up from 14 million shares at previous close. Both the share price and volume were the counter's highest since its relisting last month.
The Stratech Group was formerly Stratech Systems, before it was restructured and relisted on April 6. Prior to the relisting the firm has been on SGX watch list since June 2013.
In the three months ended December 31 last year, Stratech reported a net loss of $1.82 million. But the firm is confident about the demand outlook for its key products such as airfield surveillance system iFerret and vehicle security detection system iVACS.
"Based on the keen interest we have seen and as our products gain market share, we are optimistic about achieving a sustained earnings turnaround, as well as growing a recurrent income stream and unlocking value for our shareholders," company founder and chairman David Chew said in early April.