Thursday, December 21, 2006

Is Tan Sri Quek Leng Chan buying Kencana?

One of my blog readers,UB, pointed out the following remarks.

  • Quek to emerge a major shareholder in Kencana? click here for article

    "...TYCOON Tan Sri Quek Leng Chan, owner of the Hong Leong Group, may emerge as a substantial shareholder of oil rig builder Kencana Petroleum Bhd, sources said." ...

    "Quek may buy between 12 and 15 per cent of the company's shares from existing shareholders, one of the sources said." ...

UB then went to say "For comparison purpose, I wonder whether other countries' newspapers also come up with reports based on citing unnamed sources?

In Singapore, Aussie, UK or US... do they come up with articles in this way as well? Is this a norm thing in financial news reporting?

Anybody with overseas experience care to enlighten us?

Actually this kind of reporting in our local dailies has been going on for as long as I started reading the financial news...I mean if the newspapers can tell us something without naming their sources, what is the difference between their information, and that given by the ah-soh buying vegetables at the market?

(I mean apart from... the ah-soh's rumours won't cause the stock price to move sharply the next day.. or trading session.. whereas that which is published in the newspapers will...)"

I fully agree with what UB is saying here.

The press should not be used as a mean to promote stocks!!

And if and when this article is denied then how?

Shouldn't the reporters be questioned who exactly these ssources are?

Are they, these sources, even real?

And what vested interest does these sources have on these stocks? Hmm...

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7 comments:

  1. swifz9:15 PM

    Since all the newspaper are listed in Bursa, maybe Bursa can query like this:

    "We refer to the article made by XXX in your newspaper on DDMM, can you ask your reporter to confirm the legitimacy of the source."

    But then again, rumors are good for Bursa, so why do they want to prevent it? This issue should be raised by the media ethics committee...if we have one. Maybe it is time we set up one.

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  2. Anonymous8:56 AM

    Nowadays most business reporters get most of their pay from outsiders (businessmen, fund managers, syndicates), not from newpaper or magazine.

    ReplyDelete
  3. zentrader10:13 AM

    This reminded me my old corporate day. We bull shit in the board room everyday but some shit turned out to be gold after all. :)

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  4. Moolah2:52 PM

    Swif,

    You said that "But then again, rumors are good for Bursa, so why do they want to prevent it?"

    Ah.. for sure rumours are great to drive a stock up.

    But just who holds the mighty divine right to spread these rumours?

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  5. Anonymous8:06 PM

    See our media has ZERO ethics! They create story so that shares can be manipulated! http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_be5ef916-cb73c03a-1ff2e1b0-4fac41ca

    ReplyDelete
  6. Anonymous10:43 PM

    anon, your link is not displayed properly. Blogger seems to have some problems displaying long links correctly in comments... I also faced this before. maybe u can repost it with linebreaks after each "/" ?

    Thxx..

    ub

    ReplyDelete
  7. Moolah10:48 PM

    UB,

    link is ok. You need to copy and paste it in full.

    ====================

    Kencana: No talks with Quek

    Kencana Petroleum Bhd said yesterday neither its directors nor any of its major shareholders were in talks with Tan Sri Quek Leng Chan for the sale and purchase of its shares.

    Kencana was responding to Bursa Malaysia query on a news report that Quek may emerge as a substantial shareholder of the company, with a 12% to 15% stake.

    ReplyDelete