Bangkok--Jan 16--SET
President of the Stock Exchange of Thailand (SET), Mr. Kittiratt Na-Ranong, announced that trading of the International Engineering Pcl.’s (IEC) shares would be suspended for 5 business days due to the irregularity in its trading patterns. Of main concern is that this might be a case of price manipulation as stipulated in the Security and Exchange Act. The facts about IEC trading are as follows:
1. The prices and trading value of IEC shares, from end-September 2005 to end-December 2005, rose continuously. IEC’s price increased by 278.29%, from THB1.29 to THB4.88. Its trading soared from THB661.44 million in September 2005, to THB5,186.88 million in December 2005, a 684.18% increase.
Over Jan. 3 — 13, 2006, IEC’s share price jumped to THB7.40, increasing by 51.64%. Trading during these 9 business days was abnormal, totaling THB5,718.34 million in January 1-13, or more than for the entire preceding month .
2. There were more than 30 related individuals involved in IEC’s high and concentrated trading turnover in a continuous time period. The trading pattern possibly indicates attempts to push the share price up, and orders were matched among this group of people. Moreover, trading was often made just before market-closing, driving IEC’s closing prices up several times.
3. The SET has been implementing measures to protect investors and the overall market conditions. This includes:
3.1 On 3 separate occasions, the SET prohibited trading of IEC’s shares trading on a net settlement and margin trading basis:
- October 19 — November 9, 2005 (15 business days)
- November 10 — December 23, 2005 (30 business days)
- December 26, 2005 — March 21, 2006 (60 business days)
3.2 On 6 separate occasions, the SET sent written notification to securities companies to oversee the IEC trading of the above-mentioned specific group of people.
However, the trading pattern among the connected group of investors remained unchanged.
Since the case may severely affect trading of IEC shares, to protect investors from investing in these shares under suspicious circumstances, by virtue of the SET regulation on Rules, Conditions and Procedures of the Temporary Suspension the Trading of Listed Securities, Clause 5(7) and 6, IEC’s trading shall be suspended for 5 business days, from January 16 — 20, 2006. The SET will conduct further in-depth investigation, collecting further information, and submit it to the Securities and Exchange Commission as soon as possible. The procedure is in accordance with the anti-share price manipulation practices stipulated in the Securities and Exchange Act B.E. 2535.
For more information, please contact the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Kulvida Jintakawong
Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien End.