Civmec plunges on sell down
Singapore-listed contractor Civmec has blamed a collapse in its stock price on at least one significant shareholder selling down his stake.
The WA company told the Singapore exchange last night that it believed the share sales - made for personal reasons - were responsible for the sharp falls.
Civmec's shares closed down S14.5�, or 29 per cent, to S35.5� yesterday. The stock had been falling steadily since March 10, when it closed at S65�.
Chief executive Pat Tallon said the fact the stock traded in low volumes meant individual selling could have a dramatic effect on the price.
It is understood the shareholder was a former Civmec employee who invested in the company before it floated in 2012.
"There's nothing negative happening in the business," Mr Tallon said. He said some investors may have been spooked by the trading activity.
The heavy engineering company had said a day earlier in response to a query from the exchange that it could not explain the trading. The exchange yesterday morning issued a "trade with caution" notice about the stock.
Resources-focused Civmec reported a 29 per cent surge in half-year net profit to $S18 million ($17 million), after revenue nearly doubled. It has since won contracts for the Burswood sports stadium and the Roy Hill iron ore contract.
· Monadelphous Group has told the Australian Securities Exchange it is does not know why its shares rose sharply over the past week.
The engineering firm's stock increased from an intra-day low of $8.50 last Thursday to an intra-day high of $10.60 yesterday.
