Trading quizzed

Trading quizzed
Dry-bulk stalwart Jinhui Holdings has been forced by the Hong Kong Stock Exchange to comment on “unusual price and volumes movements” as its shares took another battering.
The Hong Kong and Oslo-listed outfit has now seen its share value plummet over 450% in three months and they currently sit well below the HKD 1 ($0.13) mark.
Another almost 23% drop on Friday was cause for concern but clearly what caught the eye of authorities at the city’s exchange was the large number of Jinhui’s shares traded through the day.
“The board is not aware of any reasons for such unusual movements,” was Jinhui’s response to the exchange’s request for an explanation for the slump in price and unusual volume of shares traded.
“The board also confirms that there are no negotiations or agreements relating to intended
acquisitions or realizations which are¿Neither is the board aware of any matter¿which is or may be of a price-sensitive nature.”
Like many dry-bulk owners, Jinhui’s share price has suffered as freight rates wane, particularly in the capesize and panamax sectors. Jinhui has a large fleet of handymaxes, however, a segment which, although hit by the current market malaise, has produced some of the more resilient rates of late.
Jinhui’s share price dropped from HKD 0.84 to HKD 0.65 during the course of Friday.
However, it is the volumes of trades on Friday which is likely to have caught the exchange’s attention. The start of the day saw 55,000 shares being traded with 2,068,000 going by closing time.
On the 17 July Jinhui’s share price in Hong Kong stood at HKD 4.70. A month later it was still at HKD 3.99 but fell to HKD 2.70 on 17 September.
Since then, apart from a rise on 9 October the share price has dipped continuously and finally fell below the HKD 1 mark on Wednesday.
Jinhui’s shares listed in Oslo fell off 3.5% on Friday to currently sit at NOK 12.45 a piece.
By Eoin O'Cinneide in London