If you haven't notice, the prices of SMRT and SBS Transit soared to S$1.205 and S$1.315 respectively, up almost 20% from wednesday (23 Apr) closing prices!!SGX has also launched an investigation/query to investigate on the unusual trading activity.But what actually happened... I received an analyst report stating 2 possible reasons:Scenario 1
Railway Financing Framework in place - Highly possible – The house believes that SMRT is making inroads with regulators regarding the accounting of asset transfers under the new rail-financing framework. This is assume to be very close to a conclusion.
In short, the end result will be a predictable cash flows and a more sustainable financing model, which will alter the fate of the company. Under the new rail financing framework, LTA will collect a licence charge that the operator will pay for the right to run and generate returns from ......
