MONO stocks under close watch by SET for suspected manipulation
Mono Next, whose trading symbol is MONO, put under trading restriction measure Level 1
The Stock Exchange of Thailand (SET) announced on Tuesday that it is closely monitoring trading and prices of shares of Mono Next Plc on suspicion that its prices were being manipulated.
The SET announced that Mono Next, whose trading symbol is MONO, has been put under the trading restriction measure Level 1 since November 27 and will remain under the measure until December 17.
Under Level 1, buyers must purchase MONO stocks in cash, and cash balance procurement is prohibited.
The SET said that after the MONO stocks were put under the Level 1 trading measure, it detected irregular trading methods and irregularly rising prices during the four days of trading on office days from November 27 to December 2.
First of all, MONO’s share prices rose by 31.5% since it was put under the measure.
The SET noted that the trading value of MONO shares also rose compared with before it was put under measure although there was no new material information to attract buyers and although it suffered a negative price/earning per share ratio and a price to book value ratio at 8.82 times.
The SET added that the daily turnover percentage of MONO stock was high, indicating possible price manipulation. The daily turnover percentage rose from 0.75% before November 27 to 3.04% after the stock was put under the trading restriction measure.
The SET also found that the trading was carried out by the same group. These traders committed about 15% of trading value each day and they were believed to be causing the prices to rise.
The SET said if the prices of MONO shares continued to rise with supportive fundamental information, the SET would put it under trading restriction measure Level 2.
Under the Level 2 measure, MONO’s shares will be allowed to be traded only via auction and net settlement, and cash balance methods will be prohibited.
