The bases for forming that opinion included (among other things) the price of the counter, volume traded on SGX-ST, contra trades constituting a significant amount of the volume, volume of short sales, and position in the buying in market.
Accordingly, pursuant to Rule 6.7 of the Rules of SGX-ST, the Board has declared Dayen a "Designated Security", and has imposed the following condition:- "Any sale of Dayen shares shall be prohibited unless the seller has a free balance of the securities in his securities account maintained with the CDP at the time of entering into the sale contract and produces satisfactory evidence that he owns sufficient quantities of the Designated Security in his securities account maintained with CDP. This condition is not applicable to the contra sale of shares purchased on or before the date of the declaration."
This means that only buyers who have already paid for their shares can sell them and sellers are not able to short sell the counter. No new contra positions will be permitted. However, existing contra trades will be permitted to be sold to clear the position.
The counter will be suspended for one hour on 3 May 2002 from 9am and will resume trading at 10am.
SGX-ST will continue to review the position to see when it may be appropriate to revoke the declaration.
