” I refer to the newspaper report “Transport Stocks up on talk of changes,” published in My Paper dated 21 May 2014. The report said that the land transport stocks powered ahead on Tuesday, 20 May 2014, on speculation that key structural changes to the Land Transport Industry were imminent. The Minister of Transport announced these policy changes, a new framework for how public buses will operate, on late Wednesday afternoon 21 May 2014.
By that time, according to the newspaper report, SMRT Corp’s stocks climbed 14 cents or 10.9% to reach 11-month high of $1.48/-, with 21.3 Million shares changing hands, and that Comfort Delgro Corp’s Stocks rose by 7 cents or 3% to hit a seven year high of $2.38/-, with 11.4 Million shares transacted. On Tuesday 20 May 2014, SMRT Corp was among the day’s top gainers, far outstripping the Straits Times Index’s small 3.04 point rise.
I would like Monetary Authority of Singapore, Commercial Affairs Department and the Singapore Police Force to investigate if any Land Transport Companies’ Shareholders engaged in inside trading making use of non-public and materially price-sensitive information which were in their possession for their own benefits.”
Mr Ravi shared that it was the report by My Paper that prompted him to make the police report. He said that he only got read to the 21st May report on Saturday and was shocked by what was written.
Until 21st May’s announcement of the LTA’s new bus contracting model, there had been no news report which might explain the increased transaction of the SMRT’s stocks.
This resulted in a notice of surveillance issued by Singapore Exchange Securities Trading Limited on SMRT Corporation Ltd’s stocks when the stocks increased substantially in its share price by 21.0% on 24 April 2014.
SMRT responded on 24 April 2014 that it was not aware of any reasons that could possibly explain the trading in its securities.
TOC has sent a letter of enquiry to the Singapore Police Force for comments. However it is noted that Monetary Authority of Singapore (MAS) deals with cases of insider trading.
Referring to the stock transaction record of SMRT Corporation, SBS Transit Limited and Comfortdelgro Corp Ltd (mother company of SBS Transit) attached below, you might see some interesting trends of stock transactions.
(Stock records from Bloomberg Business week)