How Now SC?

It's here.

The other day I blogged on the following issue: Can Our Financial Reporters Report Facts And Not Heresay?. In it, I mentioned about how the reporter wrote a financial news based on 'it is believed' and 'according to sources' that PadiBeras Nasional was to taken private at a price of rm2.50.

Well, it's here.

ARTICLE ENTITLED : "Plan to take Bernas private nears completion"

The Querry:

• We refer to the above article appearing in The New Straits Times, Business
  Times Section, page 40 on Thursday, 14 December 2006, a copy of which is
  enclosed for your reference.
  In particular, we would like to draw your attention to the following
  sentences:-
  "Tan Sri Syed Mokhtar al-Bukhary is believed to be nearing completion of a plan to take private Padiberas Nasional Bhd (Bernas),..."
  "...the tycoon is close to finalising a proposal to offer RM2.50 a share for
  the shares they do not own in Bernas."
  In accordance with Bursa Securities' Corporate Disclosure Policy, you are
  requested to furnish Bursa Securities with an announcement for public release confirming or denying the above reported article and in particular the above sentences after due and diligent enquiry with all the directors, major
  shareholders and all such other persons reasonably familiar with the matters about which the disclosure is to be made in this respect. In the event you deny the above sentences or any other part of the above reported article, you are required to set forth facts sufficient to clarify any misleading aspects of the same. In the event you confirm the above sentences or any other part of the above reported article, you are required to set forth facts sufficient to
  support the same. Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.
  Yours faithfully
  
  TAN YEW ENG
  Head, Issuers
  Listing Division
  Group Regulations
  TYE/LPY
  cc: Encik Chung Tin Fah, Securities Commission

The Reply from PadiBeras:

• Reference is made to your query dated 14 December 2006, pertaining to an article appearing in The New Straits Times, Business Times Section, Page 40, on Thursday, 14 December 2006.
  
  We wish to inform that at this stage, the Company is not aware nor has any knowledge of the proposed exercise as stated in the said article.
  
  Meanwhile, we are making due enquiries with all the directors and major shareholders of the Company on this matter. The Company shall make the necessary announcement upon receiving confirmation from the said relevant parties.

I have shown in the posting Easy Money!! how such a story helped popped up the stock price.

Consider this. The day before the story was published, Padiberas last traded on the market at a price of r1.95.

Then the following day, the reporter came out with his guns blazing saying that PadiBeras will be taken private a price of rm2.50. A nice decent premium over rm1.95.

And what did the stock do the following day?

Well the stock rose as much as 20 sen before closing the day with a gain of 6 sen.

Highly impressive when that trading day was rather terrible for the general market.

Now the Security Commission has querried Padiberas and Padiberas has denied this privatisation issue.

So again, I ask who is these sources who keep churning out such stories?

Hey someone is making easy money from these stories based on these sources.

So how now SC?

Why don't you queery our financial reporters and ask them where on earth did they their sources?

Whatever happened to responsible journalism?

Whatever happened to the Integrity of Our Financial Press?