$41 Billion Flash Crash Leaves Singapore’s Stock Market Stunned: What Happened?
By CCN.com: Jardine Matheson shares listed on the Singapore Exchange (SGX) took a sudden 83 percent dive worth $41 billion on Thursday morning before making an equally quick recovery. The stunning movement, which took place in a matter of minutes, sparked a temporary market panic as stock market investors struggled to dump their stocks before an equally rapid recovery took place. At the end of it, about 167,500 shares had changed hands at discounts of up to 75 percent of the previous day’s closing price.
Flash Crash Blindsides SGX Traders
The Jardine Matheson Group is a conglomerate with interests spread across Asia. Founded in China in 1832, the group is owned by the Keswick family, and it holds extensive positions in the restaurant and hotel business, car dealerships and real estate. In 2017, the group reported total revenue of about $83 billion, with a profit of about $1.57 billion.
Prior to this event, Jardine Matheson’s stock price had never had a double-digit loss in 10 years. Experts say that it is possible that the plunge, which happened during pre-market trading, could not be caught since the exchange’s circuit breakers only swing into action when the trading market opens.
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