Medtecs (SGX: 546) shares are up 18% and change today in Singapore. There's been a burst of trading in the stock just recently which explains the price movement. But then that just moves the “why?” question one iteration back. Why has there been a burst of interest and trading in Medtecs? This isn't something that has an obvious answer.
There've been no announcements from the company on new contracts or significant changes in the business. There's some chatter from the Philippines about how they might start working there. But the move in trading was sufficient to trigger questions from the SGX itself. That's not a bad thing in itself, just one of those monitoring functions exchanges do. Significant (even “excessive”) changes in prices or trading volumes do get the exchange asking well, what's going on here? And if there's no particular reason then that's just that.
Medtecs share price from Singapore Stock Exchange
That something is going on is obvious. But what that specific thing is - other than just more people being interested in buying. For that is what moves such stock prices. Just changes in sentiment about what the future might hold.
We've talked about Medtecs before. It's a manufacturer of protective medical equipment and other such related items. Obviously, the pandemic and lockdown was boom times for them. But booms come to an end, as did the pandemic. Unfortunately, a number of new companies arose to meet that excess demand as well. So, there's more competition among suppliers now for that same old market. There's also the point that expansion to meet the excess demand now needs to be cost managed properly.
Quite why there should be renewed interest in Medtecs right now isn't something we know. All we can do is observe that it is there. Then decide what we want to do about it. There is always the possibility that anti-infection measures still persist, for example, but now that the panic is over buyers are migrating toward long term suppliers rather than the new market entrants. On the other hand it could just be buyer speculation about how Medtecs might be about to do something interesting. At this level of the market, with so little analyst coverage, it's simply not possible to tell from the outside.
