Stock Exchange Of Thailand Out To Probe Stock Trading Irregularities

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The Stock Exchange of Thailand (SET) has made an announcement via the Bangkok Post, a Thai news outlet. This announcement is in regards to the exchange platform scrutinizing irregularities within its stock trading. This will be done as a result of multiple new shares that the exchange has listed seeing significant surges on their first trading day.

Staggering Rise In Stock Prices

The report itself was made on Friday, and it highlighted how trading with high turnover volumes had attracted the attention of investigators, in particular.

The major Thai exchanges, the Market for Alternative Investment (MAI) and the SET, has recently listed the shares of three new companies: Silicon Craft Technology Plc (SICT), Sri Trang Gloves Thailand Plc (STGT), as well as I&I Group Plc (IIG).

STGT was one of the companies that were listed on the SET, and saw a staggering 78% price rise on the very first day of trading. MAI, in turn, saw both IIG and SICT skyrocket in price by the tune of 200%. When you put it like that, it’s easy why these exchanges expect some sort of foul play at hand.

Cause Of Major Alarm

It should be noted, however, that STGT is the third-largest manufacturer of rubber gloves in the world. The other two companies, IIG and SICT, are known as information technology (IT) companies, as well.

While the stock price rises are extremely suspect, there is a faint possibility that foul play wasn’t at hand. Instead, a possible explanation could be that these companies could have their stocks rise so dramatically in demand due to the COVID-19 pandemic. All three of these companies were unaffected by the pandemic, or even benefitted from it.

Gaining More Market Cap With A Sixth Of the Companies

Pakorn Peetathawatchai stands as the President of the SET, and told the press that the newly-listed companies seeing such an unnatural market activity had raised several alarms. This, in turn, has forced the exchange to initiate a probe within these three companies.

The standard procedure for the SET is to list anywhere between 30 to 40 new companies every year. This, in turn, will contribute to the total market cap of the exchange, adding approximately 250 billion to 300 billion Thai Baht to the exchange. However, only five companies have been added for 2020 to be publicly debuted on the exchange. At the same time, the combined market cap for these companies is a staggering 330 billion Baht.

Peetathawatchai warned that this probe will not be limited to the IPO market, but will also investigate all cases of irregular share price movements.

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