Commentary

What can be done to avoid repeat of 2013's penny stock crash in S'pore

John Soh Chee Wen (left) and Quah Su-Ling were convicted over manipulating the share prices of BAL on May 5, 2022. PHOTO: ST FILE
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SINGAPORE - The penny stock crash of 2013 must surely rank as one of the darkest chapters in the annals of the local market, given that it wiped out more than $8 billion in market value within a short space of time.

The crash came about when the Singapore Exchange (SGX) had to intervene in the trading of three stocks, Blumont Group, Asiasons Capital and LionGold Corp, known collectively as BAL, before a full-scale investigation was launched into the possibility that BAL's share prices had been manipulated.

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