THE share price of Samudera Shipping Line : S56 +5.88% shot up by 42 per cent to S$1.15 over a period of less than 2 weeks between Jul 13 and 25, before it announced its half-yearly profit 2 days later.

 

The counter&rsquo s spectacular performance attracted a query from the regulatory unit of the Singapore Exchange (SGX) on Jul 21, when its share price rose 9.1 per cent on trading volume that had trebled from the previous day. SGX Regulation (SGX RegCo) queried the Indonesia-based carrier near market closing.

 

In contrast, the Straits Times Index eked out a gain of 1.7 per cent in the Jul 13-25 period, and clocked a decline of 0.6 per cent the day Samudera was quizzed for its &ldquo unusual price movements&rdquo .

 

The company, which has been listed in Singapore since 1997 and subsequently graduated to the mainboard in 2000, told the market regulator that it was &ldquo not aware of any information not previously announced&rdquo concerning it and its units, or any other possible reasons that might explain the trading.

 

The carrier also confirmed that it has complied with the listing rules, in particular Rule 703, which obliges listed companies to disclose any information &mdash with certain exceptions &mdash necessary to avoid a false market in the trading of their shares or that would be likely to materially affect the price or value of their shares.

 

The corporate disclosure policy mentioned in Rule 703 sets out examples of various events requiring immediate announcements by a listed company, including significant improvement or deterioration in its near-term earnings prospects.

 

Less than a week after it responded to the SGX RegCo query, Samudera &mdash which has benefited from pandemic-fuelled e-commerce and logistics demand &mdash reported a 367.6 per cent year-on-year increase in its half-year net profit to US$171.7 million.

 

Could Samudera have known about its profit with some certainty when the stock price started its ascent on Jul 13, some 2 weeks before the release of its financial results? If it had not, what about when it received the SGX RegCo query?

 

SGX RegCo will review the disclosures of Samudera and &ldquo investigate into any potential breaches of the listing rules&rdquo , a spokesperson told The Business Times.

 

At least 8 listed companies have flagged significant profitability changes in the last fortnight, all about 14 days ahead of the release of their financial statements. Centurion Corp : OU8 +1.32%, notably, said its profit for the half year to June would be at least 250 per cent higher compared to the year-ago period.

 

When Samudera reported in February that its earnings for FY2021 were 16 times compared to the previous year, the company also did not precede it with a profit guidance. While it might be a company that is not used to trumpeting its stellar performance, the disclosure requirement is there for a reason &mdash to level the playing ground for all market participants.