Bloomberg News

Raffles Education Unaware of Reason for Surge in Shares

February 09, 2012

(Adding Singapore Exchange comment in fifth paragraph, closing price in second.)

Feb. 9 (Bloomberg) -- Raffles Education Corp., the operator of fashion-design schools in Singapore, China and India, said it’s unaware of any reason for the biggest surge in its share price in three years ahead of an earnings announcement yesterday.

Raffles Education jumped 14 percent to 52.5 Singapore cents yesterday, the biggest advance since February 2009. About 35.5 million shares changed hands, 23 times the stock’s average daily trading volume in the three months to Feb. 7, according to data compiled by Bloomberg. The stock dropped as much as 6.7 today, before closing 3.8 percent lower at 50.5 Singapore cents.

“We are not aware of the party behind the transaction,” Elaine Ang, director of investor relations at Raffles Education, said in reply to Bloomberg queries. The company also has “no idea” why the share price and volume surged, she said.

The Singapore-based company said after the market closed yesterday that first-half net income climbed to S$21.2 million ($17 million) from S$6.3 million a year earlier, boosted by exceptional gains.

Singapore Exchange Ltd. spokeswoman Carolyn Lim declined to comment.

--Editors: John McCluskey, Nick Gentle

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net


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