SGX queries SBS, SMRT on jump in share prices and volumes

SINGAPORE - The Singapore Exchange has issued queries to SBS Transit and SMRT Corp on unusual activity in the trading of their shares, after the shares of both companies surged on Friday (Dec 4).

SBS Transit rose to its highest level in more than four years, jumping as much as 9.4 per cent to S$2.10 in early trading, while SMRT soared as much as 6.4 per cent.

The surge in the share prices of the two public transport operators came after Transport Minister Khaw Boon Wan hinted during a forum on Friday that there will be a restructuring of the rail industry.

 

Speaking at a Joint Forum on Infrastructure Maintenance, Mr Khaw said "creating an excellent rail system requires an integrated approach, from design and construction, right through to actual operations and maintenance".

"Our current model separates the designer and builder, LTA (Land Transport Authority), from the maintainer and operator, SMRT and SBST," he said.

Mr Khaw added that he has instructed the LTA to build up its engineering crew. 

"They must establish a team that is able to take on operations and maintenance, if we decide to move in that direction," he said.

yasminey@sph.com.sg