The Stock Exchange of Thailand (SET) is investigating unusual trading of Seamico Capital Plc (ZMICO) securities after issuing its highest-level trading control warning in mid-March that failed to stabilise the company's share price volatility, according to an industry source who requested anonymity.
The level 3 warning was issued March 18 due to dramatic increases in the company's share price despite the fact the company reported it had not announced any investment plans and its fundamentals remained unchanged.
As part of the order, brokers must require buyers to place 100% cash down before purchasing shares in ZMICO and are not allowed to offset the buying and selling of shares on the same day.
From the SET's records on the trading activities of ZMICO shares, it was found that the share movements deviated greatly from the normal levels.
The price of ZMICO shares spiked 119.64% since Monday, entering the measure at level 1 warning at 2.24 baht to close at 4.92 baht on March 29.
On Tuesday, the price continued to surge 7.72% in morning trading hours, with a turnover of 166 million baht.
ZMICO has a negative price to earning ratio (P/E) and price per book (P/ BV) of 3.42 times, according to the SET.
In light of this, the SET urged investors to be especially cautious and consider the company's fundamentals carefully before making an investment decision on ZMICO shares.
In addition, all brokers have been requested by the SET to supervise trading and any business operations related to ZMICO shares in order to make sure their companies are complying with the market surveillance criteria.
The industry source said speculation around ZMICO's share price had mounted since it announced its subsidiary SE Digital would enter the digital asset business through an agreement with digital wallet provider ERX.
The company also reported to the SET early February this year that its board of directors and management team structure had changed.
ERX is the only wallet service provider in Thailand who can provide the service for the Tezos blockchain.