HPL shares rebound as Ong's lawyers ask for fine, no jail time

Shares of Ong Beng Seng's Hotel Properties Limited (HPL) rebounded from early losses on Aug 4 with the prosecution saying it did not object to the convicted property tycoon being fined instead of imprisoned due to his severe medical condition.

- Sue-Ann Tan

Ong had earlier in court pleaded guilty to abetting the obstruction of justice in a case linked to former transport minister S. Iswaran. His sentencing is set for Aug 15. Its outcome may have repercussions for the hotel and property company that Ong founded and still controls.

HPL opened down 0.2 per cent, before tumbling as much as 1.3 per cent to $5.39 at 9.46am. The shares then began to reverse course until closing up four cents or 0.7 per cent at $5.50.

Some 150,000 shares changed hands, about twice the average daily trading volume for the stock, which is usually thinly traded as it is tightly held.

At the court hearing on Aug 4, Ong's defence lawyers said he suffers from multiple myeloma, a type of incurable blood cancer, and that he is seriously immunocompromised.