In todays paper in the Star (18.6.09), the headline reads:
On the alert. SC and Bursa to act against market manipulators.
Investors beware!
Thursday June 18, 2009
SC and Bursa to act against market manipulators
By YAP LENG KUEN
PETALING JAYA: The Securities Commission (SC) and Bursa Malaysia will investigate and take action if there is any evidence of stock market manipulation amidst the current liquidity-driven rally.
“Both the SC and Bursa carry out surveillance of all trading activities on the exchange.
“The scope of surveillance covers all dimensions of the trading activities. If there is any evidence of market manipulation, the SC and/or Bursa Malaysia will investigate and take appropriate enforcement action,” an SC spokesman said in an e-mail response to queries from StarBiz. “This is further complemented by SC’s investor education programmes conducted regularly to help investors make informed investment decisions.”
Since early May, Bursa has issued six unusual market activity (UMA) queries, following sudden surges or drops in share price or volume traded. The first query went to Unisem (M) Bhd (May 6), followed by Measat Global Bhd (June 4), Transmile Group Bhd (June 5), SAAG Consolidated (M) Bhd and Compugates Holdings Bhd (June 11) and Equine Capital Bhd (June 16).
Recent price movements of some counters
Bursa chief regulatory officer Selvarany Rasiah said as a frontline regulator, Bursa had a duty to ensure an orderly and fair market.
“The maintenance of an orderly and fair market necessarily means that the exchange focuses on identifying the presence of any manipulative or artificial nature of trading on the market. On this note, to be clear, it is the manipulative or artificial nature of trading (in the sense of being false or resulting from trickery or deception) that is of concern to the exchange,’’ she said in a statement to StarBiz.
“Where trading takes place in an informed market and in the absence of manipulative conduct, the exchange believes it is a matter for investors to make a decision as to whether to participate.
“So-called speculative trading is not in itself offensive or undesirable but it is not tolerated by the exchange if it transforms into a market offence such as manipulative trading conduct.’’
“While those in the market may only see the UMAs or market alerts – or only be aware of the contact we have directly with them – the exchange engages in a high level of activity across all facets of the market, monitoring and investigating trading and initiating a range of regulatory responses to ensure that the market is fair, orderly and informed.”
On comments that the current market alerts were reminiscent of those issued in old times, she said: “Stock markets, this one included, tend to be cyclical and when market levels change, the exchange will come in as necessary to inform investors about the importance of ignoring rumours and basing their trading decisions on research and a careful consideration of the fundamentals of the stocks that make up the market.
“The exchange will continue its active monitoring of trading, engagement with brokers and registered persons, its use of a range of regulatory responses from those that can be implemented immediately to investigation and disciplinary action which necessarily takes more time to complete.’’
Hence, she added, the market could expect to see continued use of UMAs and market alerts, a continuation of Bursa’s awareness raising activities and emphasis on the role of listed issuers, participating organisations and registered persons’ play in ensuring market integrity.
“We note also the value, particularly to investors, of the publication and reporting of market alerts and other information about trading activity on our market,” she said.
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"Where trading takes place in an informed market and in the absence of manipulative conduct, the exchange believes it is a matter for the investors to make a decision as to whether to participate.
So-called speculative trading is not in itself offensive or undesirable but it is not tolerated by the exchange if it transforms into a market offence such as manipulative trading conduct."
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Wednesday June 17, 2009
Equine queried on heavy trading
PETALING JAYA: Equine Capital Bhd (ECB) in reply to a Bursa Malaysia query yesterday said it was not aware of any event that may have contributed to the unusual market activity in its shares recently, in particular, on June 15.
ECB was the most heavily traded counter on Monday with 50.28 millions exchanging hands.
In a filing with Bursa, the ECB board of directors said that they were not aware of any corporate development relating to ECB group’s business and affairs that had not been previously announced that may account for the unusual market activity.
“We do not have any other possible explanation to account for the unusual market activity,” it added.
Since April, Bursa has issued five unusual market activity queries, issued when the share price or volume of a company suddenly surges.
The first for the year was on May 6 when it queried Unisem (M) Bhd, followed by four more this month, starting with Measat Global Bhd on June 4, Transmile Group Bhd the next day, and SAAG Consolidated (M) Bhd and Compugates Holdings Bhd on June 11.
Meanwhile, Compugates told Bursa yesterday group managing director and substantial shareholder Goh Kheng Peow had received margin call notices between June 2 and June 7 from Malacca Securities, EON Bank Bhd, OSK Investment Bank Bhd and Malayan Banking Bhd.
Earlier, in a reply to Bursa’s query on June 11, Compugates said the recent high trading volume was caused by a reduction of margin facility to Goh by stockbrokers.
For example, RM5mil was revised downwards to RM1.5mil effective May 20 by TA Securities.
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