Date: October 1, 2013
We refer to the query by SGX regarding trading activity in relation to Blumont. The unusual rise of share price of Blumont Group Limited (Blumont) from $0.30 on 2 January 2013 to $2.45 on 30 September 2013, a 8-fold increase over only 9 months since the beginning of January 2013, gives basis for serious concerns for investors of Blumont. Shareholders need to know the basis and whether the 8-fold price increase is supported by fundamentals of the Company. Further, in the same period, the market capitalisation of Blumont has also increased from S$508 million to S$6.3 billion, which is a 12.5-fold increase. We hope, there is an acceptable explanation by the Company, if not SIAS calls on the relevant authorities to investigate this unusual stock activity immediately and let all stakeholders know the reasons for the unusual share price hike. Should the investigations reveal breaches of the law, then the full weight of the law must be brought to bear on the wrongdoers, if any. In these circumstances, SIAS would call on Blumont investors to exercise caution and make an informed decision in relation to this stock.
President / CEO