Singapore’s Venture Corp. received a boost from its Chief Executive Officer Wong Ngit Liong Wednesday — the stock soared as his S$6.1 million purchase of 400,000 shares announced Tuesday inspired the market to follow suit.
Shares of the electronics service provider rose as much as 10 percent on Wednesday to its highest level since October 2007. This is the second time Wong has purchased shares in recent months. He bought 166,300 shares for S$2.08 million in July, ahead of Venture’s second-quarter results which recorded a 61 percent increase in net income.
“The buying sends a good positive signal, and the market is speculating that maybe third-quarter results could even be better than the second-quarter results, which means that the street consensus is too low,” Jarick Seet, head of small and mid-cap research at RHB Research Institute Singapore Pte. said by phone.
Wednesday’s rally has pushed Venture’s advance this year to almost 70 percent and all seven analysts surveyed by Bloomberg rate the stock a buy.