An analyst has advised investors to avoid trading One To One Contacts (OTO) stock based on price volatility, though the company was cleared by a Stock Exchange of Thailand (SET) investigation over unusual trading volume.
OTO shares rebounded sharply on Tuesday, rising 21.9% to finish at 1.72 baht, after losing nearly 90% several days earlier. The shares then dipped 7.56% to 1.56 baht by midday on Wednesday.
The SET examined the irregular trading volume of OTO and found a few individual investors were responsible.
OTO, which provides outsourced contact centre services to government agencies and corporate customers, informed the bourse there is no change or development that would affect the company's business in the future.
The SET on Monday concluded that OTO trading displayed a small but insignificant portion of forced selling and program trading.
The Securities and Exchange Commission (SEC) revealed that OTO's major shareholder Boonuea Jittanom pressed the order to sell 21 million shares in a row, accounting for 2.6558%, through Trinity Securities.
After the transaction, Mr Boonuea now holds 9.6143% in the company.
Nattapong Sritavorarat, OTO's second-largest shareholder, also sold 1.8 million shares, representing 0.2269%. After the sale, he held 93.9 million shares, with ownership reduced to 11.8% from 12.27%.
OTO shares lost 89.1% from 16.2 baht to 1.77 baht during June 12-22. The price continued to decline by 20.3% from 1.77 baht on June 23 to 1.41 baht on June 26.
OTO was listed under the SET's Level 1 trading regulation during June 12-26.
There were no significant developments affecting trading conditions of the company during the period other than Bundit Sapianchai's resignation as company director and the appointment of Kanawuthi Wattanadhirach as acting chief executive, effective from next month.
An analyst at Finansia Syrus Securities who requested anonymity said OTO's share price rose markedly on Tuesday after steadily falling to 1.50 baht, from a record high of 24 baht in the past.
"There was a lot of short-term speculation after the share price dropped sharply earlier," said the analyst.
"Recently the SET clarified the facts regarding the trading conditions of OTO securities, noting that nothing unusual was found."
Investors are advised to avoid buying OTO stock because of fundamental factors, said the analyst, as the long-term business direction remains unclear and the stock price is volatile.