And Bursa Malaysia Gets Serious And Fines ex-Remiser Rm 60,000

And then there is the case of the ex-remiser who got fined rm 60,000.00.

RM 60,000?

Er... seriously... what kind of fine is that?

I mean if this fella is found guilty... then he's guilty... but the fine of rm 60,000???

Goodness me!

With such a MASSIVE fine.. this sure will stop any future shenanigans!

Comeon... who's insulting who?

Oh yeah... forgot to mention the fine was for 'unlawful trading'.

Gosh! What on earth is 'unlawful trading'?

Comeon!

How does one expect our stock exchange to improve and rid itself of such pathetic nonsense in the future?


On the Edge:

• Bursa Securities fines ex-remisier RM60,000 for unlawful trading Written by Joseph Chin of theedgemalaysia.com
  Tuesday, 18 October 2011 17:51
  
  KUALA LUMPUR: Bursa Malaysia Securities Bhd rapped and fined a former dealer’s representative Mohd Zahir Abd Manan RM60,000 for unlawful and unethical trading activities.
  
  It said on Tuesday, Oct 18 that it had also ordered Mohd Zahir be struck off from the Register as a dealer’s representative in unlawful and unethical trading activities in the securities of H-DISPLAYS (MSC) BHD [] and HDM-Carlaw Corp Bhd.
  It said Mohd Zahir, who at that time a commissioned dealer’s representative of PM Securities Sdn Bhd, triggered and breached the provisions of the Rules of Bursa Securities.
  
  “Bursa Securities views misconducts that compromise the integrity or honesty of registered persons seriously as registered persons, including dealer’s representatives are required to uphold the interest of their clients and the investing public,” it said.
  
  Bursa Securities said Mohd Zahir had carried out numerous unauthorised sale and purchase transactions in the securities of H-Displays and Carlaw over a period of time via two of his clients’ accounts.
  His unauthorised transactions resulted in substantial contra losses which were disputed by the clients when they were subsequently informed of the losses.
  
  It added he had colluded with a third party, who was not a person allowed and authorised, in writing, to trade on behalf of these clients. In this regard, instructions to trade via the two clients’ accounts were received from the identified third party and were carried out by Mohd Zahir. The commission generated from these trades was shared between Mohd Zahir and the third party.
  
  “Mohd Zahir had also colluded with the identified third party to manipulate these two securities by maintaining their prices at certain levels. The manipulative trading activities had impacted the price of these securities during the relevant period.
  “Mohd Zahir’s misconduct in carrying out these unauthorised trades and participating in unlawful activities, including price manipulation of these securities over a period of time, demonstrated his blatant disregard of his obligations as a responsible dealer’s representative,” it said.

Sigh!

Comeon... why can't Bursa just gets really tough on these buggers?

RM 60,000?

Bah!

Where got enough?

At Long Last, SC Takes Action Against Kosmo MD

Posted on 27 May 2011: At Last Some Justice For Kosmo Fraud Case

Let me reproduce the posting in full.

Back on Oct 2009, I posted Kosmo's Directors Shocking Fine!!

Let me highlight some of the facts again.

Fact 1.

Company said it made 109 thousand in its unaudited account for its fiscal year.
Company actually had LOSSES totalling 141 million according to its audited accounts.

From 109 thousand to a LOSS of 1141 million!!!

Source: here

Blogged here: Kosmo Technology Shocking Deviation Of Accounts
See also : Unaudited and Audited Accounts: UnReal or Real?

What's the major cause of the massive deviation in the accounts? According to the company's own reasoning: here, two major items were 'Impairment Loss of 55.6 million and 'Provision for doubtful debt of 75.9 million' (ps: see the importance not to discount the trade receivables issue?)

Fact 2.

Company had problems in submitting its financial statements: KOSMO TECHNOLOGY INDUSTRIAL BERHAD ("KOSMO" or "the Company") Delay in issuance of 2007 Annual Report

Fact 3.
Back in 2006, it traded as high as 8.50.
It last traded at 1 sen




At the peak, KOSMO had a stock market value of around 1 Billion.

Fact 4.
Kosmo is now delisted!

And so on 30 Oct 2009, Bursa Securities publicly reprimanded and fined two directors of another delisted company, KOSMO TECHNOLOGY INDUSTRIAL Bhd, a total of RM257,300!

From Bursa website.

Paragraph 9.16(1)(a) of the LR requires a listed issuer to ensure that its announcement is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions.

Pursuant to paragraph 9.22(1) of the LR, a listed issuer must give Bursa Securities for public release, an interim financial report that is prepared on a quarterly basis, as soon as the figures have been approved by the board of directors of the listed issuer, and in any event not later than 2 months after the end of each quarter of a financial year.

Paragraph 9.23 of the LR states that a listed issuer must ensure that the issuance of the annual audited accounts and annual report by a listed issuer shall be as follows :-
(a) the annual report shall be issued to the listed issuer’s shareholders and given to Bursa Securities within a period not exceeding 6 months from the close of the financial year of the listed issuer; and
(b) the annual audited accounts together with the auditors’ and directors’ reports shall, in any case, be given to Bursa Securities for public release, within a period not exceeding 4 months from the close of the financial year of the listed issuer unless the annual report is issued within a period of 4 months from the close of the financial year of the listed issuer.

Paragraph 16.11(b) of the LR states that a director of a listed issuer must not permit, either knowingly or where he had reasonable means of obtaining such knowledge, a listed issuer to commit a breach of the LR.

KOSMO had breached :-

(a) paragraph 9.23(b) of the LR for failing to submit the Company’s annual audited accounts for the financial year ended 31 December 2007
("AAA 2007") on or before 30 April 2008. The AAA 2007 was only submitted on 30 June 2008;

(b) paragraph 9.23(a) of the LR for failing to submit the Company’s annual report for the financial year ended 31 December 2007 ("AR 2007") on or before 30 June 2008. The AR 2007 was only submitted on 6 August 2008;

(c) paragraph 9.22(1) of the LR for failing to submit the Company’s quarterly report for the financial period ended 31 March 2008 ("QR 1/2008") on or before 31 May 2008. The QR 1/2008 was only submitted on 30 June 2008;

(d) paragraph 9.16(1)(a) of the LR for failing to ensure the Company’s announcement dated 29 February 2008 on the fourth quarterly report for the financial year ended 31 December 2007 ("QR 4/2007") took into account the adjustments as stated in the Company’s announcement dated 30 June 2008, in particular the adjustments pertaining to additional provision for doubtful debts and impairment loss for development cost.
KOSMO had reported an unaudited profit after taxation and minority interest of RM109,000 for the financial year ended 31 December 2007 in the QR 4/2007. However, the Company had on 30 June 2008 reported an audited loss after taxation and minority interest of RM141,715,814 in the AAA 2007. The difference of RM141.824 million between the unaudited and audited results for the financial year ended 31 December 2007 represents a deviation of more than 100 times.

Dato’ Norhamzah bin Nordin and Encik Mohamad Nassir bin Mohd Kassim who were the directors of KOSMO at the material time were found to be in breach of paragraph 16.11(b) of the LR for permitting either knowingly or where they had reasonable means of obtaining such knowledge the Company to commit the aforesaid breaches.

They were informed of the audit concerns / issues to make provision for doubtful debt and possibility of impairment of development costs since August 2007 but have failed to demonstrate adequate efforts taken to discharge their duties to :-

(i) address the audit issues pertaining to impairment loss of development costs to enable timely submission of the financial statements in accordance with the LR; and

(ii) ensure that the QR 4/2007 made the necessary provision for doubtful debts and impairment loss on development cost to give a true and fair view of the state of affairs of the Company as at the financial year ended 31 December 2007 and in compliance with paragraph 9.16(1)(a) of the LR.

The finding of breach and imposition of the above penalties on KOSMO and the directors are made pursuant to paragraph 16.17 of the LR upon completion of due process and after taking into consideration all facts and circumstances of the matter including in relation to the directors, the roles and responsibilities of the directors in the Company particularly pertaining to the maintenance and preparation of financial statements.

So they were fined 257 thousand and their stock, which at one time was worth ONE Billion, disappeared into thin air with its delisting!

It's now May 2011.

On Star Biz: Kosmo director, accounts manager charged by SC

• Friday May 27, 2011
  
  Kosmo director, accounts manager charged by SC
  
  PETALING JAYA: The Securities Commission charged a director and an accounts manager of Kosmo Technology Industrial Bhd yesterday for providing false information to Bursa Malaysia Securities Bhd.
  
  In a media statement, the regulator said six charges under section 122B(a)(bb) Securities Industry Act 1983 and two charges under section 369(a)(B) Capital Market and Services Act 2007 were preferred against Mohd Azham Mohd Noor and Helen Lim Hai Loon for false statements in the company’s eight quarterly unaudited results for financial years 2006 and 2007.
  
  If convicted, they will be liable to a fine not exceeding RM3mil and imprisonment for a term not exceeding 10 years for each charge.
  
  Azham and Lim were released on bail of RM150,000 with one surety each. Sessions Court Judge Rosenani Abd Rahman further ordered that their passports be surrendered to the court and fixed an application for their trial to be held jointly on June 22.
  

Finally some form of justice!

But is it enough?

According to the report, a fine not exceeding rm3 million and imprisonment for a term not exceeding 10 years for each charge.

But the stock at its peak was worth 1 Billion. And I wonder how much was profited by that incredible stock price back then?

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

On Star Biz today: SC brings Kosmo Technology MD to court

Wednesday June 8, 2011

SC brings Kosmo Technology MD to court

PETALING JAYA: The Securities Commission has file a suit against Kosmo Technology Industrial Bhd group managing director Datuk Norhamzah Nordin for allegedly providing false information to Bursa Malaysia Securities Bhd.

The SC preferred six charges under section 122B(a)(bb) of the Securities Industry Act 1983 and another two charges under section 369(a)(B) of the Capital Markets and Services Act 2007 yesterday against Norhamzah for allegedly making false statements pertaining to the company’s eight quarterly reports for the financial years 2006 and 2007.

If convicted, he could be liable to a fine of not more than RM3mil and imprisonment not exceeding 10 years for each charge.

Norhamzah was granted bail at RM200,000 with one surety and was required to surrender his passport to the court.

The charges against Norhamzah followed those against Mohd Azham and Lim Hai Loon at the Sessions Court on May 26.

The court will hear the prosecution’s application for joint trial of Norhamzah, Mohd Azham and Lim on June 22.

Comments: It's great to see that SC had finally taken action against Kosmo MD.

Ok, I could be WRONG here but I am not sure if the fine of not more than 3 million is justifiable or not.

Now at the peak, Kosmo stock is worth about 1 billion in the stock market. Question I would ask is how much did they profit for giving false information to Bursa? Ok, it would be naive for me to assume a value of 1 billion but let's assume that profits were made about one third of the peak or 300 million. Would that not be possible?

Now if that was possible... surely the fine of 3 million is rather small, yes?

Remember the fact no 1.

Company said it made 109 thousand in its unaudited account for its fiscal year.

Company actually had LOSSES totalling 141 million according to its audited accounts!!!

At Last Some Justice For Kosmo Fraud Case

Back on Oct 2009, I posted Kosmo's Directors Shocking Fine!!

Let me highlight some of the facts again.

Fact 1.

Company said it made 109 thousand in its unaudited account for its fiscal year.
Company actually had LOSSES totalling 141 million according to its audited accounts.

From 109 thousand to a LOSS of 1141 million!!!

Source: here

Blogged here: Kosmo Technology Shocking Deviation Of Accounts
See also : Unaudited and Audited Accounts: UnReal or Real?

What's the major cause of the massive deviation in the accounts? According to the company's own reasoning: here, two major items were 'Impairment Loss of 55.6 million and 'Provision for doubtful debt of 75.9 million' (ps: see the importance not to discount the trade receivables issue?)

Fact 2.

Company had problems in submitting its financial statements: KOSMO TECHNOLOGY INDUSTRIAL BERHAD ("KOSMO" or "the Company") Delay in issuance of 2007 Annual Report

Fact 3.
Back in 2006, it traded as high as 8.50.
It last traded at 1 sen



At the peak, KOSMO had a stock market value of around 1 Billion.

Fact 4.
Kosmo is now delisted!

And so on 30 Oct 2009, Bursa Securities publicly reprimanded and fined two directors of another delisted company, KOSMO TECHNOLOGY INDUSTRIAL Bhd, a total of RM257,300!

From Bursa website.

Paragraph 9.16(1)(a) of the LR requires a listed issuer to ensure that its announcement is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions.

Pursuant to paragraph 9.22(1) of the LR, a listed issuer must give Bursa Securities for public release, an interim financial report that is prepared on a quarterly basis, as soon as the figures have been approved by the board of directors of the listed issuer, and in any event not later than 2 months after the end of each quarter of a financial year.

Paragraph 9.23 of the LR states that a listed issuer must ensure that the issuance of the annual audited accounts and annual report by a listed issuer shall be as follows :-
(a) the annual report shall be issued to the listed issuer’s shareholders and given to Bursa Securities within a period not exceeding 6 months from the close of the financial year of the listed issuer; and
(b) the annual audited accounts together with the auditors’ and directors’ reports shall, in any case, be given to Bursa Securities for public release, within a period not exceeding 4 months from the close of the financial year of the listed issuer unless the annual report is issued within a period of 4 months from the close of the financial year of the listed issuer.

Paragraph 16.11(b) of the LR states that a director of a listed issuer must not permit, either knowingly or where he had reasonable means of obtaining such knowledge, a listed issuer to commit a breach of the LR.

KOSMO had breached :-

(a) paragraph 9.23(b) of the LR for failing to submit the Company’s annual audited accounts for the financial year ended 31 December 2007
("AAA 2007") on or before 30 April 2008. The AAA 2007 was only submitted on 30 June 2008;

(b) paragraph 9.23(a) of the LR for failing to submit the Company’s annual report for the financial year ended 31 December 2007 ("AR 2007") on or before 30 June 2008. The AR 2007 was only submitted on 6 August 2008;

(c) paragraph 9.22(1) of the LR for failing to submit the Company’s quarterly report for the financial period ended 31 March 2008 ("QR 1/2008") on or before 31 May 2008. The QR 1/2008 was only submitted on 30 June 2008;

(d) paragraph 9.16(1)(a) of the LR for failing to ensure the Company’s announcement dated 29 February 2008 on the fourth quarterly report for the financial year ended 31 December 2007 ("QR 4/2007") took into account the adjustments as stated in the Company’s announcement dated 30 June 2008, in particular the adjustments pertaining to additional provision for doubtful debts and impairment loss for development cost.
KOSMO had reported an unaudited profit after taxation and minority interest of RM109,000 for the financial year ended 31 December 2007 in the QR 4/2007. However, the Company had on 30 June 2008 reported an audited loss after taxation and minority interest of RM141,715,814 in the AAA 2007. The difference of RM141.824 million between the unaudited and audited results for the financial year ended 31 December 2007 represents a deviation of more than 100 times.

Dato’ Norhamzah bin Nordin and Encik Mohamad Nassir bin Mohd Kassim who were the directors of KOSMO at the material time were found to be in breach of paragraph 16.11(b) of the LR for permitting either knowingly or where they had reasonable means of obtaining such knowledge the Company to commit the aforesaid breaches.

They were informed of the audit concerns / issues to make provision for doubtful debt and possibility of impairment of development costs since August 2007 but have failed to demonstrate adequate efforts taken to discharge their duties to :-

(i) address the audit issues pertaining to impairment loss of development costs to enable timely submission of the financial statements in accordance with the LR; and

(ii) ensure that the QR 4/2007 made the necessary provision for doubtful debts and impairment loss on development cost to give a true and fair view of the state of affairs of the Company as at the financial year ended 31 December 2007 and in compliance with paragraph 9.16(1)(a) of the LR.

The finding of breach and imposition of the above penalties on KOSMO and the directors are made pursuant to paragraph 16.17 of the LR upon completion of due process and after taking into consideration all facts and circumstances of the matter including in relation to the directors, the roles and responsibilities of the directors in the Company particularly pertaining to the maintenance and preparation of financial statements.

So they were fined 257 thousand and their stock, which at one time was worth ONE Billion, disappeared into thin air with its delisting!

It's now May 2011.

On Star Biz: Kosmo director, accounts manager charged by SC

• Friday May 27, 2011
  
  Kosmo director, accounts manager charged by SC
  
  PETALING JAYA: The Securities Commission charged a director and an accounts manager of Kosmo Technology Industrial Bhd yesterday for providing false information to Bursa Malaysia Securities Bhd.
  
  In a media statement, the regulator said six charges under section 122B(a)(bb) Securities Industry Act 1983 and two charges under section 369(a)(B) Capital Market and Services Act 2007 were preferred against Mohd Azham Mohd Noor and Helen Lim Hai Loon for false statements in the company’s eight quarterly unaudited results for financial years 2006 and 2007.
  
  If convicted, they will be liable to a fine not exceeding RM3mil and imprisonment for a term not exceeding 10 years for each charge.
  
  Azham and Lim were released on bail of RM150,000 with one surety each. Sessions Court Judge Rosenani Abd Rahman further ordered that their passports be surrendered to the court and fixed an application for their trial to be held jointly on June 22.
  

Finally some form of justice!

But is it enough?

According to the report, a fine not excedding rm3 million and imprisonment for a term not exceeding 10 years for each charge.

But the stock at its peak was worth 1 Billion. And I wonder how much was profited by that incredible stock price back then?

Kosmo's Directors Shocking Fine!!

Fact 1.

Company said it made 109 thousand in its unaudited account for its fiscal year.
Company actually LOST 141 million according to its audited accounts.

Source: here
Blogged here: Kosmo Technology Shocking Deviation Of Accounts

See also : Unaudited and Audited Accounts: UnReal or Real?

What's the major cause of the massive deviation in the accounts? According to the company's own reasoning: here, two major items were 'Impairment Loss of 55.6 million and 'Provision for doubtful debt of 75.9 million' (ps: see the importance not to discount the trade receivables issue?)

Fact 2.

Company had problems in submitting its financial statements: KOSMO TECHNOLOGY INDUSTRIAL BERHAD ("KOSMO" or "the Company") Delay in issuance of 2007 Annual Report

Fact 3.

Back in 2006, it traded as high as 8.50. See chart here.
It last traded at 1 sen

Fact 4.

Kosmo is now delisted!

On today's Edge Financial Daily: Bursa fines Energreen, Kosmo directors over RM900,000

• KUALA LUMPUR: Former Bursa Malaysia Securities-listed Energreen Corporation Bhd’s directors have been publicly reprimanded and fined a total of nearly RM650,000 for failure to submit its financial statements by the stipulated deadlines and failure to provide accurate information to investors.
  
  In a statement on Oct 29, Bursa Securities said it had found Energreen and 12 directors to be in breach of several listing requirements (LRs) while the company was listed on Bursa Securities.
  
  They are former chairman Datuk Seri Prof Dr Ibrahim Saad, who was fined RM2,250, former managing director Ang Sun Beng (a total of RM240,000), Choong Khoong Beng (RM4,500), Ong Wee Meng (RM4,500), Datuk Wira Jamaludin Abd Rahim (RM5,000), former audit committee chairman Badrul Hassan Mohamed Kassim (RM16,000), group managing director Datuk Abd Ghani Ali Kadir (RM274,000), Chin Kuet Lee (RM55,200), former chairman Datuk Seri Mohd Shariff Omar (RM9,050), Datuk Chee Hong Leong (RM13,300), Soh Yew Aun (RM17,000) and Dr Roslan A Ghaffar (RM8,500).
  
  Bursa Securities also publicly reprimanded and fined two directors of another delisted company, KOSMO TECHNOLOGY [] INDUSTRIAL [] Bhd, a total of RM257,300 for similar breaches of LRs. Bursa Securities said the breaches were also committed when the company was still listed.

A fine of a mere 257 thousand??????

Of course the deviation of Kosmo's account equated to 'failure to provide accurate information to investors' and hence it should be fined.

But then... look at the SIZE of the deviation!

It went from a profit of 109 thousand to a loss of 141 million!

A deviaton of 100 times! oO

And the company failed to submit its financial statements.

And the company is now delisted.

And the company went from 8.50 to no more! (Kosmo is now delisted!!!!)

And what do we get?

A fine of 257,300???????

Here's the full text of the announcement on Bursa website.

• Paragraph 9.16(1)(a) of the LR requires a listed issuer to ensure that its announcement is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions.
  Pursuant to paragraph 9.22(1) of the LR, a listed issuer must give Bursa Securities for public release, an interim financial report that is prepared on a quarterly basis, as soon as the figures have been approved by the board of directors of the listed issuer, and in any event not later than 2 months after the end of each quarter of a financial year.
  
  Paragraph 9.23 of the LR states that a listed issuer must ensure that the issuance of the annual audited accounts and annual report by a listed issuer shall be as follows :-
  (a) the annual report shall be issued to the listed issuer’s shareholders and given to Bursa Securities within a period not exceeding 6 months from the close of the financial year of the listed issuer; and
  (b) the annual audited accounts together with the auditors’ and directors’ reports shall, in any case, be given to Bursa Securities for public release, within a period not exceeding 4 months from the close of the financial year of the listed issuer unless the annual report is issued within a period of 4 months from the close of the financial year of the listed issuer.
  
  Paragraph 16.11(b) of the LR states that a director of a listed issuer must not permit, either knowingly or where he had reasonable means of obtaining such knowledge, a listed issuer to commit a breach of the LR.
  
  KOSMO had breached :-
  
  (a) paragraph 9.23(b) of the LR for failing to submit the Company’s annual audited accounts for the financial year ended 31 December 2007
  ("AAA 2007") on or before 30 April 2008. The AAA 2007 was only submitted on 30 June 2008;
  
  (b) paragraph 9.23(a) of the LR for failing to submit the Company’s annual report for the financial year ended 31 December 2007 ("AR 2007") on or before 30 June 2008. The AR 2007 was only submitted on 6 August 2008;
  
  (c) paragraph 9.22(1) of the LR for failing to submit the Company’s quarterly report for the financial period ended 31 March 2008 ("QR 1/2008") on or before 31 May 2008. The QR 1/2008 was only submitted on 30 June 2008;
  
  (d) paragraph 9.16(1)(a) of the LR for failing to ensure the Company’s announcement dated 29 February 2008 on the fourth quarterly report for the financial year ended 31 December 2007 ("QR 4/2007") took into account the adjustments as stated in the Company’s announcement dated 30 June 2008, in particular the adjustments pertaining to additional provision for doubtful debts and impairment loss for development cost.
  KOSMO had reported an unaudited profit after taxation and minority interest of RM109,000 for the financial year ended 31 December 2007 in the QR 4/2007. However, the Company had on 30 June 2008 reported an audited loss after taxation and minority interest of RM141,715,814 in the AAA 2007. The difference of RM141.824 million between the unaudited and audited results for the financial year ended 31 December 2007 represents a deviation of more than 100 times.
  
  Dato’ Norhamzah bin Nordin and Encik Mohamad Nassir bin Mohd Kassim who were the directors of KOSMO at the material time were found to be in breach of paragraph 16.11(b) of the LR for permitting either knowingly or where they had reasonable means of obtaining such knowledge the Company to commit the aforesaid breaches.
  
  They were informed of the audit concerns / issues to make provision for doubtful debt and possibility of impairment of development costs since August 2007 but have failed to demonstrate adequate efforts taken to discharge their duties to :-
  
  (i) address the audit issues pertaining to impairment loss of development costs to enable timely submission of the financial statements in accordance with the LR; and
  
  (ii) ensure that the QR 4/2007 made the necessary provision for doubtful debts and impairment loss on development cost to give a true and fair view of the state of affairs of the Company as at the financial year ended 31 December 2007 and in compliance with paragraph 9.16(1)(a) of the LR.
  
  The finding of breach and imposition of the above penalties on KOSMO and the directors are made pursuant to paragraph 16.17 of the LR upon completion of due process and after taking into consideration all facts and circumstances of the matter including in relation to the directors, the roles and responsibilities of the directors in the Company particularly pertaining to the maintenance and preparation of financial statements.
  
  
  

All Is Forgotten In A Bull Market!

Posted the other day: How Much Do You Really Care About OUR Stock Market?

On today's Star Business: Better voting process necessary in shareholders’ meetings

• Credit-Suisse Securities (M) Sdn Bhd head Stephen Hagger said the local corporate governance scene had improved significantly over the years, but issues such as related party transactions remained a major concern.
  
  “Unfortunately, the bull market is bad for corporate governance as all is forgotten in a rising market,’’ he said.

Sad but true.

Yeah, who cares about bad corporate governance??

Most important is the opportunity to make money!

Sern Kou Tells Bursa Malaysia They Are Unaware!

They don't know!

On Business Times:

• Sern Kou replies to Bursa query
  
  Published: 2009/10/19
  
  BURSA Malaysia issued an unusual market activity query to Sern Kou Resources Bhd last Friday over the high daily volume in its share trading recently.
  
  In its reply, Sern Kou said enquiries had been made among its directors and major shareholders and they were not aware of any rumour or report that might have contributed to the unusual activity.

This is the chart of Sern Kou.

Now they (Sern Kou) TOLD Bursa Malaysia that "enquiries had been made among its directors and major shareholders and they were not aware of any rumour or report that might have contributed to the unusual activity".

Now the problem is there is this announcement posted on Bursa Website.

Look at that GODZILLA SIZED disposal of shares made!

So who is Quek Gim Hong@ Keh Gim Hong?

How?

The second largest shareholder had BEEN DUMPING shares and yet the company said they are unaware of the recent unusual market activity!!!!!!!!!

How can they not be aware?

How lah Bursa?

Do you accept such reply to your UMA (unusal market activity) query?

Ps: Do you care?

How Much Do You Really Care About OUR Stock Market?

Posted on the chatbox.

• mydreamgetgold: Since our Securities Commission, the Star and NST are all sleeping, Malaysia Today should run a report of possible insider trading by Oilcorp Bhd directors. Recently, Oilcorp was slapped with the PN17 status and its shares tumbled. But before the announcement, its directors had been selling off their holdings relentlessly. Isn't that clear indication of insider trading? Look at the declaration published by Bursa.

Good point Dream!

Problem is... how many of Malaysian stock market 'players' (investors & traders & punters) really care?

Yes!

How much do YOU really care?

And when it comes to OPPORTUNITIES to make money in the market, people tend to forget what had happened before.

Most important is NOW!

How much can I make now?

No one makes money from past history!

Most important is what the stock will do NOW and the NEXT TRADED minute.

Take iCapital. Who will remember what they did early last year? Who will remember? Who cares?

Do you care at all?

Yusli: Them Chinese Stocks Are NOT Poor Quality

On Business Times: Bursa refutes reports on 'poor quality' Chinese stocks

• BURSA Malaysia Bhd (1818) said the perception that Chinese companies list their shares in Malaysia because they cannot do it in other countries, is inaccurate.
  
  "Hence, it is unfortunate that there has been a fair amount of stereotyping of Chinese companies as lacking quality based on the perception of what happened in other parts of the region," Bursa chief Datuk Yusli Mohamed Yusoff said in a statement.
  
  Bursa was responding to recent media articles that said foreign listings, which have been from China, were of "poor" quality.
  
  Yusli said the resilience of Malaysia's stock market and fair market valuations have been key factors that attracted the Chinese firms to pick Malaysia as a fund-raising destination.
  
  "The government's pro-business stance, its enhanced ties and cordial relationship with China has also helped to provide confidence to these Chinese companies and profile Malaysian capital market in the international stage," he noted.
  
  Bursa reiterated that the listing framework requires advisers to carry out rigorous due diligence exercises including corporate governance assessments.
  
  Hence, investor protection remains the top driving factor that promotes a high level of corporate governance standard among public listed companies in Malaysia.
  
  "In our pursuit to make Malaysia attractive as an international listing and investment destination for local and international investors, we emphasise greatly on our key strength of providing high standards of investor protection as it underpins the quality and strength of a market," Yusli said.

Yes, I would be agree that it is wrong to discriminate these local listed Chinese stock without proper reasoning.

As it is, the stocks are newly listed and it's rather unfair to judge them now.

However, for Yusli's sake, I do hope these Chinese stocks do deliver. If they start loosing money within a year or two after listing or if their earnings deteriorates after listing, then many issues would be raised.

Ingress: Where Is My Dearest UMA?

Posted this morning: Ingress: Yesterday's Hot Stock Got Even Hotter!

Stock then was 0.415. It closed at 0.385.

Look at the insane jump in Ingress stock price.

And no UMA (unusual market activity) query from Bursa!!

In the afternoon, DowJones had this newsclip.

• 0323 GMT [Dow Jones] Ingress Corp. (7112.KU) +17.4%, or 6 sen, at 40.5 sen in heavy volume; dealers cite follow through buying interest on award of MYR61.9 million worth of contracts expected to contribute positively to FY09, FY10 earnings. Also, investors speculating Sukuk-holders will vote in favor of extending maturity date of first tranche of MYR160 million Sukuk at ongoing EGM to Jan. 9, 2010, from July 9, 2009. "If they are successful in extending the maturity date, the burden on cashflow will be mitigated. The award of new contracts is also working in favor of the stock," says dealer. Resistance at 64.5 sen (August 2008 peak). (VGB)

Two reasons give by the dealers (not the company). I wonder who are these dealers? Does these dealers have any vested interests?

Anyway...

Reason 1. Power contract from TNB. Contribute positively? As per posting Today's Hot Stock: Ingress Corporation, Ingress had a rather lousy record in the power sector. It tend to lose money more than it makes. And even, if it makes money, the money made was rather minimal.

Reason 2. Sukuk thingee. On the Edge Financial Ingress gets 6-months extension

• KUALA LUMPUR: Ingress Corporation Bhd has received a six-month extension to repay the first tranche of its sukuk amounting to RM50 million which was due July 9.
  
  The company said on July 2 the sukuk holders, had at its EGM, approved the resolution to extend the maturity date to Jan 9 next year.
  
  "The approved six months extension is to enable the company to formulate and finalise a comprehensive financial restructuring plan for the whole of the Ingress group," it said.

Extension to pay back loans. LOL! It's this a justifiable reason for the stock to soar?

6 months to pay back rm 50 million!

Time to check out the balance sheet.

rm 27.9 million left in the piggy bank.

The liabilities...



See the increased borrowings.

And lastly the cash flow statement.

How?

How do you rate Sukuk holders chances of collecting back rm 50 million in 6 months time?

How now my dearest UMA?

Bursa Malaysia Asks Listed Companies To Sell More Shares

On Business Times: Bursa to push firms to sell more shares

• BURSA Malaysia Bhd, operator of the nation’s exchange, said it will press publicly traded companies to sell more shares to stay in a revamped benchmark stock index, a move aimed at making the equities easier to buy and sell.
  
  “One of the biggest complaints by investors is you have very good companies, but they find it difficult to buy the shares,” Datuk Yusli Yusoff, Bursa’s chief executive officer, said in an interview in Kuala Lumpur yesterday. It will “bring a sense of competition; a lot of companies would want to be in that benchmark,” he said.
  
  The bourse is replacing the Kuala Lumpur Composite Index of 102 companies with the new 30-share FTSE Bursa Malaysia KLC on July 6. Companies in the new index will be required to have at least 15 per cent of their shares publicly available for trading, a level that will increase every six months.
  
  The government said yesterday it plans to sell more of its holdings in some of the nation’s biggest companies to help lure more foreign investment to Malaysia after the benchmark index’s 23 per cent climb this year lagged behind returns of other Southeast Asian stock markets.
  
  At least five of the nation’s 10 biggest publicly traded companies by sales, including Tenega Nasional Bhd and Petronas Dagangan Bhd, are partly owned by the government’s investment company, data compiled by Bloomberg show. -- Bloomberg

I do not quite agree.

I do think that from a business perspective, as a listed entity, Bursa Malaysia is biased towards more liquidity. More liquidity means more transactions and more transactions means more business.

Well is the lack of liquidity the main reason why investors chose not to invest in our stocks?

Would having more liquidity increase the attractiveness of our shares?

And what about the current shareholders in these companies?

If I have shares in say a stock named 'Banyak Shares Bhd' and if the company does a placement of 20% just to increase the liquidity, how would I feel? Won't this stock sale dilute my earnings per share by 20%? Would I be over the moon?

So stock sale or placement dilutes the earnings for the minorities. What about rights issue? The minority would then be given a chance to participate in such an exercise. Well, some might not like it because given the current economic conditions worldwide, not all minority shareholders will have the excess money to buy more shares!!! So would the minority shareholder be over the moon?

Nervous Over The Bursa Queries?

Posted on Saturday. Does Bursa Query Work?

• hhc1977 said...
  
  1)This is bolehland whereby rumors sometimes had more truth than actual news itself.
  2)Even though Bursa query doesnt work as intended, but remember someone sais that certain degree of speculation is actually good for market (who do u think pay for bursa staff).
  3)having said that, i believe the ball is actually lied with investors himself to differentiate the "good" rumor and bad "rumor". There are many methods to invest/speculate in share and "rumor" is way too hard for me :)
  4)If investors are not greedy/gullible, no amount of tricks employed by syndicate will be effective.
  5)Lastly, BURSA has the ultimate weapon against syndicate through designated share status. But, the WMD was used always too late as i thought it was used to prevent investor/better to salvage whatever money they still have in that share.

In regards to rumours.

Just thinking out loud.

Well if nothing is done to attempt to maintain integrity of the news, then all we will have is a market full of rumour mongering.

And since you do know that sometimes if the rumour or as some might call it 'lie' is told well enough, it can drive up the stock price. Which ultimately means money! Money for the rumour mongrel.

Now I am just curious, who gets the divine rights to be the chief rumour mongrel?

The one that can BS in the best possible manner?

And surely this is not how we want our market to develop, right? Come on, just for the sake of making the extra money, do we have to sell our souls to the devil and lose all our self esteem and integrity?

Surely not, yes?

LOL!

But of course many will just shoot down these comments as simply being too naive!

This is the stock market man, they would argue. The ultimate point is to make money and if we have to screw others or other people's money, so be it!

Look around, I am sure you can see it happening. Even in simple stock market chats, some would lose all their self esteem and do everything possible to protect their vested interests. And if they have to be a jerk, they probably won't lose sleep over it.

Yup, it's a mad, mad world.

It's just so sad.

Why do people behave like this?

Does the stock market brings out the creature in all of us?

I hope not!

Anyway, I reckon many are feeling rather uneasy in regards to all these queries. For punters, it's like a time bomb. And of course many of these punters can't comprehend what Bursa is trying to achieve, for they fear that these queries could put a huge damper in their punting activities.

Does Bursa Query Work?

On Star Business: Taming the scourge of syndicates

• Saturday June 13, 2009
  Taming the scourge of syndicates
  Sideways
  By ANITA GABRIEL
  
  Proactive, not reactive measures needed
  
  BACK in 2006, in a display of sheer obstinacy and disregard for caution, when Bursa Malaysia shot out a cautionary note to warn investors of the unusual gyrations in several counters, some of them reacted but not as expected – their share prices rose at a more feverish pace. These counters were clearly being ramped up and manipulated by syndicates at the expense of unwary investors.
  
  Left with little choice and to curb excessive speculation, Bursa, in consultation with the Securities Commission, slapped some of these counters with the much dreaded designated status which meant that trades on these securities could only be done with cash upfront. The move was enough to spook investors who dumped the stocks but for some of them, the fall was not as spectacular as their rise. But there were a great number of retail investors who bought into the hype and ended up with stomach-churning losses.
  
  More recently, renewed confidence that economic recovery may no longer be an elusive goal for the country has injected much vigour into the moribund stock market. But it has brought with it an unsavoury accompaniment; the syndicates (some prefer to use the euphemism “market makers”) are clearly back in the turf, spinning stories and churning stocks and getting many to believe them hook, line and sinker. Investors, as they say, have short memories, made even shorter at the chance of making a quick buck.
  
  For some, the stories being churned may eventually stack up as they seem “highly plausible” but as it stands now, they have yet to surface. One such story (in various permutations) made its way to the market two weeks ago. This time, it didn’t involve the usual suspects but involved the companies controlled by T. Ananda Krishnan (AK) and as such, it piqued much curiosity.
  
  Two weeks ago, a local research firm shot out a news flash that Maxis Communications Bhd, two years after it was privatised, is seeking a relisting on the stock exchange. It speculated that a “major corporate exercise at the highest level” was brewing involving a plan to inject Maxis into Astro All Asia Networks plc. A week later, the rumour took on a different dimension; Maxis may undertake a reverse takeover of another listed entity, Measat Global Bhd. Then this – Measat and Astro may merge. All of these companies share AK as a common shareholder.

Aha... Maxis To Be 'Listed' Again?

Yeah OSK Research was the culprit! As suggested by me, tons of salt was needed before reading it. For example.

• “Although details are sketchy, we gather that a plan is being mooted to inject Maxis into Astro,” it said in a report issued on June 1.
• “While we are not able to confirm the accuracy of the news or the mechanism through which the re-listing would be executed, we believe it is not implausible given the strong paternal links of both companies via a common shareholder.

Gee!

How could a reputable research house write an article issues a report based on sketchy details and more so when they cannot even confirm the accuracy of the report?

Astro today is 3.24.

On the day of my posting Maxis To Be 'Listed' Again?, Astro opening trading price was 2.91.

Err... how eh?

Anyway the Star Biz article then continues...

• It didn’t take long for the counters to react to such news and no amount of querying (by Bursa) or denials (by the companies including Maxis CEO Sandip Das’ blend “it was just rumours” denial) managed to throw cold water over the rise in the typically subdued Measat shares. Measat hit limit up a week ago and when Bursa issued a note advising investors to exercise caution and due diligence on trading of Measat shares, it was – again – snubbed.
  
  The fact is just because a plan is plausible does not make it a done deal. And it would help if investors took cognisance of that fact.
  
  “Who would you believe – the market or Measat’s board of directors?”, asked a blogger who was tracking the Measat play. On Friday, Measat announced that its MEASAT-3a satellite has been scheduled for launch on June 22 although analysts do not think that this development warrants the kind of rise seen in the counter.
  
  Interestingly, Bursa’s caution note did not merely highlight the trading in Measat shares but also that of Transmile. Indeed, the rise and fall of Transmile from a high flying stock with great promise to one marred by accounting discrepancies happened not too long ago, which makes it even harder to explain the recent consistent rise in its share price.
  
  Transmile, like almost all others who have been queried by Bursa on the unusual market activity, which some say is Bursa’s “first line of attack,” also replied that it did not know of any corporate development to account for the jump in its share price.
  
  Let’s face it. No amount of market query, alerts or caution notes are going to dampen the appetite of syndicates. These risk management systems may be a good first step but on their own, they are inadequate and moreover, merely reactive. A more proactive mode is needed to stem the tide of unscrupulous share-controlling syndicates who manipulate share prices and create a false market.
  
  Yes, for a market to remain robust and vibrant, market makers are needed but definitely not the kind who pump and dump after having “cornered” a counter and who prey on naive investors, leaving them behind as unsuspecting casualties.
  
  For at the end of the day, who wants to invest in a false market driven by conjectures?

Hmmm...

• Let’s face it. No amount of market query, alerts or caution notes are going to dampen the appetite of syndicates.

Syndicates rules?????

On Thursday I posted Measat Challenging Bursa's Query Exercise By Soaring Yet Again!

On Business Times: Queries not meant to be reprimands: Zarinah

• QUERIES from Bursa Malaysia are not meant to be reprimands but rather a chance for listed companies to give investors more information, the Securities Commission (SC) said yesterday.
  
  Companies must also be quick to deny any speculation or rumours.
  
  "The Listing Requirements require PLCs (public-listed companies) to make accurate disclosure," SC chairman Tan Sri Zarinah Anwar said during a briefing with editors.
  
  Yesterday, Bursa Malaysia warned investors to be careful when trading in shares of satellite operator Measat Global Bhd and Transmile, an air cargo company.
  
  Measat jumped to a 22-month high on speculation its owners will combine the business with a phone company or buy out the unit.

So a Bursa Query is for a chance for listed companies to give investors more information?

Oh!

Looks like Bursa Query would be a waste of time because if you look at Measat stock trading NOW, the stock is acting such a query does not exist!

On Thrusday evening, Two More Queries From Bursa Malaysia

Did it stop the heavy volume on Compugates? Nope. In fact as stated in the posting Compugates: Bursa Queries And MD Selling Massive Stake, Compugates was actually up most of the day by some 6.7%!!! ( Do see also Explanation On Compugates Heavy Selling By MD )

Which is why I think Anita Gabriel has a point here.

Bursa can query and query and query and yet the stock can rocket to the moon!

How?

Does Bursa Query works?

Two More Queries From Bursa Malaysia

What's up mate?

• Bursa Securities queries Compugates
  Written by Joseph Chin
  Thursday, 11 June 2009 15:31
  
  KUALA LUMPUR: Bursa Malaysia Securities Bhd has queried Compugates Holdings Bhd over the high daily volume in the company’s shares recently.
  
  The regulator said on June 11 investors should take note of the company’s reply to the unusual market activity query -- which would be posted at Bursa Malaysia’s website under the company announcements, http://announcements.bursamalaysia.com -- when making their investment decision.
  
  At 3.20pm, Compugates was unchanged at 7.5 sen with 57.23 million units done.

And..

• Bursa Securities queries SAAG over high volume
  Written by Joseph Chin
  Thursday, 11 June 2009 15:47
  
  KUALA LUMPUR: Bursa Malaysia Securities Bhd has issued an unusual market activity (UMA) query on SAAG Consolidated (M) Bhd over the high trading volume of its shares.
  
  The regulator said on June 11 that there was “persistent high trading interest” in the company's securities recently and directed SAAG to publicly confirm whether there was any corporate development relating to its group’s business and affairs that had not been previously announced that may account for the UMA including those in the stage of negotiation / discussion.
  It also queried SAAG whether there was any rumour or report concerning the business and affairs of the Group that may account for the unusual market activity.
  
  “…whether you are aware of any other possible explanation to account for the unusual market activity; and your compliance with the Bursa Securities listing requirements (LR), in particular paragraph 9.03 of the Bursa Securities LR rules on immediate disclosure obligations,” it said.
  
  SAAG share price was up one sen to 37.5 sen with 75.7 million shares done at 3.45pm.

Let's see...

Measat Challenging Bursa's Query Exercise By Soaring Yet Again!

On Business Times: Queries not meant to be reprimands: Zarinah

• QUERIES from Bursa Malaysia are not meant to be reprimands but rather a chance for listed companies to give investors more information, the Securities Commission (SC) said yesterday.
  
  Companies must also be quick to deny any speculation or rumours.
  
  "The Listing Requirements require PLCs (public-listed companies) to make accurate disclosure," SC chairman Tan Sri Zarinah Anwar said during a briefing with editors.
  
  Yesterday, Bursa Malaysia warned investors to be careful when trading in shares of satellite operator Measat Global Bhd and Transmile, an air cargo company.
  
  Measat jumped to a 22-month high on speculation its owners will combine the business with a phone company or buy out the unit.

So a Bursa Query is for a chance for listed companies to give investors more information?

Oh!

Looks like Bursa Query would be a waste of time because if you look at Measat stock trading NOW, the stock is acting such a query does not exist!

The stock is now up another 10 sen!

On another article Bursa cautions investors on Measat, Transmile

• BURSA Malaysia yesterday cautioned investors on the trading of Measat Global Bhd and Transmile Group Bhd shares, after both companies could not explain the unusual market activity queries dated June 4 and 5 respectively.
  
  "Given the lack of material development based on the response from the respective companies, Bursa Malaysia would like to advise investors to exercise caution and due diligence on the trading of Measat and Transmile securities," the exchange said in a statement.
  
  "The exchange would also like to draw investors' attention to the high trading interest on some counters of late, which were not supported by new or material corporate developments.
  
  " Investors are also advised to be aware of the possible risks involved when making investment decisions based solely on market rumours and are reminded to exercise due care and diligence," it added.
  
  Bursa Malaysia said it has in place market surveillance tools and systems to monitor real-time trading activities and price movements, and will not hesitate to take appropriate regulatory action where necessary.

Utterly Shambolical As Trading Halts On Bursa Malaysia Keeps Happening!

Trading halt on Bursa Malaysia is becoming a habit.

A nasty of habit and it's really kind of embarrassing.

Let's look back at the chain of happenings since last year.

On 10th March 2008 trading was halted due to limit down ruling.

• Bursa Malaysia halts trading after KLCI falls 10% limit
  
  KUALA LUMPUR: Bursa Malaysia halted trading at 2.58pm after the Kuala Lumpur Composite Index (KLCI) fell 10%, which is the maximum limit.
  
  Trading will resume at 3.58pm.
  
  The KLCI fell 130.01 points to 1,166.32, the biggest one-day percentage loss in recent years.
  
  Turnover was 913 million shares valued at RM2.47bil. Losers hammered gainers 887 to 19.
  
  Sime Darby fell RM1.90 to RM9.10, KPS lost RM1.74 to RM1.68, DiGi RM1.70 to RM21.30 while BCHB fell RM1.65 to RM8.55.
  
  Other losers were IJM, down RM1.45 to RM5.50, Puncak RM1.36 to RM3.16, Tenaga RM1.25 to RM7.40 and Bursa RM1.05 to RMN8.90

A rather understandable situation given the market sentiments then.

However on 3rd July 2008, the unexpected and the unforgiven happened.

Trading on Bursa Malaysia was halted due to technical glitch. The following news article described what happened then and hardware failure was given as the primary reason why trading was halted.

• Bursa trading suspended due to hardware snag
  
  July 04, 2008
  
  Kuala Lumpur: Prime Minister Datuk Seri Abdullah Ahmad Badawi wants immediate action taken to address the technical glitches that led to the suspension of trading in the bourse for the whole day, Thursday.
  
  "This incident will reflect negatively on us. It is very important for Bursa Malaysia to make sure the technical glitches will not recur," he told reporters in Parliament.
  
  Abdullah said he was informed of the incident but no explanation was given.
  
  Asked if there were other reasons for the incident, Abdullah, who is also Finance Minister, said: "I don't see why the technical glitch should happen.
  
  There's no reason for it to happen.
  
  "If we want to take into account in terms of the country's security, we are still safe."
  
  Abdullah said the incident cannot be considered as something that could lead to political instability.
  
  "I don't want any assumptions to be made as it can lead to negative interpretations to market sentiments. What I want to explain here is that the country's peace and security are under control," he added.
  
  Bursa Malaysia Chief Executive Officer Datuk Yusli Mohamed Yusoff had said he was confident that trading on the market would resume as usual Friday.
  
  He said the exchange had managed to resolve all technical glitches in the trading systems.
  He attributed the problem to the equities trading system experiencing a hardware failure.
  
  "However, the derivatives and bond markets, clearing, settlement and depository system were unaffected," Yusli said.
  
  Yusli also dismissed talks that the suspension was linked to any political development.
  
  Bursa Malaysia had earlier in the day announced that trading would be suspended for the morning and resume at 2.30pm. However, it later retracted the statement and issued another to say that it would not be the case.
  
  At 3.40 pm, the exchange announced that trading would stay suspended until 5pm - the usual time the market closes.
  
  "We tried resuming trade in the afternoon from a primary site but encountered connectivity problems. Only 30 of the 152 sites representing 13 brokers proved operational. We then decided to suspend trading for the rest of the day," Yusli explained.
  
  Yusli said Bursa Malaysia would review all its systems. "We expect to launch a new system in a couple of months. We are in the final stages of launching the system called Bursa Trade Security.
  
  "There is however no exchange in the world that can guarantee its systems would not fail. Still, we will ensure that this does not happen in the future," Yusli added.
  
  The last time Bursa Malaysia experienced a systems failure was in June 2000 when trading was halted for half a day due to a technical problem.
  
  Yusli estimated Thursday's loss based on brokerage fees as at RM450,000 due to the thin trading volume over the past few days.
  
  According to Yusli, 153,000 shares of 15 counters from eight brokers' sites were matched. But as the market was suspended for the whole day, all orders matched were cancelled. As for the indices, Yusli said values for July 2 would apply for the next trading session.
  
  On the issue of compensation Yusli said: "We see this as a trading problem."
  
  Responding to another question as to whether investors would lose confidence in Bursa Malaysia due to the suspension, Yusli said they should focus on the fundamentals. - Bernama.

This should not happen and there is no reason for it to happen!

That was the ORDER given!

Come December 2008, Bursa gave everyone an early Christmas present with yet another trading halt again!!!

No joke.

• Glitch in Bursa afternoon trading speedily rectified
  
  Tuesday December 23, 2008
  Glitch in Bursa afternoon trading speedily rectified
  By EDY SARIF
  
  PETALING JAYA: Bursa Malaysia Securities Bhd managed to rectify a technical problem which delayed briefly the afternoon session trading on the local bourse yesterday “in a timely manner with minimal trading disruption.”
  
  Chief executive officer Datuk Yusli Mohamed Yusoff said they were able to identify the cause and resolved the problem “expeditiously and commenced with the pre-opening phase at 2.50pm.”
  
  “Our priority remains in monitoring the system vigilantly and in ensuring there is minimal disruption to trading,” he said in a statement.
  
  Bursa Malaysia, in the same statement, said “in order to preserve a fair and orderly market, it decided to halt the securities market at the beginning of the afternoon trading session.”
  
  The stock exchange operator said it “identified an issue with an application module” which resulted in the system rejecting orders keyed in by brokers during the pre-opening phase of the afternoon trading session.
  
  However, the derivatives market was unaffected and continued to trade as normal.
  
  A remisier said the technical glitch resulted in orders from clients being halted for a while.
  
  “Orders couldn’t go through for about half an hour to 45 minutes when the market opened in the afternoon. However, we are lucky as the problem was not encountered for too long,” he said.
  
  HLG Securities Sdn Bhd remisier Muhammadi Omar said the technical problem resulted in clients losing the chance to sell their stocks when prices were good.
  
  “Before lunch time, the market was doing good as prices were really attractive. However, due to the disruption, clients who wanted to sell their stocks when the market opened in the afternoon couldn’t do so,” he said.
  
  The Kuala Lumpur Stock Exchange closed at 873.43 points yesterday, down 2.97 points.

Speedily rectified?

• Thursday December 25, 2008
  Technical glitch holds up trading again
  By EDY SARIF
  
  PETALING JAYA: Trading at the new Bursa Trade Securities was suspended again yesterday afternoon for about 45 minutes due to a technical issue.
  
  The new platform that was launched early this month encountered the same technical glitch that it faced on Monday.
  
  A statement from Bursa Malaysia said the system rejected orders keyed in by the brokers during the pre-opening phase of the afternoon trading session.
  
  However, the derivatives market was unaffected.
  
  “This is due to the application module for the pre-opening phase. A software patch is currently being developed by the trading system vendor, NYSE Euronext Advanced Trading Solution (NYXT), and is targeted for implementation by the end of this week,” it said.
  
  Chief executive officer Datuk Yusli Mohamed Yusoff said its priority remained in ensuring there was minimal disruption to trading.
  
  “We are still waiting for NYXT to come back to us with the software patch. As a stop-gap measure, our internal team put in place a work-around process which enabled us to get trading up and running within the hour on Monday and today (yesterday),” he said.
  
  He added that there was a possibility the problem would recur until the software patch had been deployed.
  
  If this happened, he said, it expected its work-around process to again get the system up and running.
  
  A remisier said the problem had resulted in orders not keyed in for his clients.
  
  Another remisier said nothing much could be done except to wait for the system to be available again.
  
  “This is the second time I’m facing this kind of problem this week. It gives a bad impression not just to us, but to investors and people who are involved in trading,” he said, adding that it was fortunate that the market was quite quiet with thin trading volume.

Chains of habit are sure difficult to break and true enough it happened yet again yesterday!!!!!!!

ARGGGGGGGGGGGGGHHHHHH!!!!!!!!!!!!!!!!!!!!

• FTSE glitch disrupts Bursa trading for half an hour
  
  STOCK exchange operator Bursa Malaysia Bhd (1818) said "a disruption to real-time index feed from FTSE" yesterday has forced it to halt trading on the stock and derivatives markets for about half an hour.
  
  The problem has affected the dissemination of data by the exchange, Bursa Malaysia said in a statement yesterday.
  
  "I don't think it's a major problem. Luckily it happened on a day when trading liquidity was quite low," Maybank Investment Bank Bhd's head of research Vincent Khoo said.
  
  The technical glitch was the fourth that Bursa Malaysia had faced since it put in a new trading system in December.
  
  Trading on the bourse was disrupted twice in a week on December 22 and 24 last year, and again on January 2 when the pre-opening session was delayed by about 18 minutes.
  Even before the new trading platform was adopted, an embarrassing system failure last July had led to a full-day trading suspension, spurring unnecessary rumours of sabotage since the market was expected to fall sharply on that particular day.
  
  Yesterday, trading was suspended after Bursa Malaysia was unable to process an information message arising from a disruption to real-time index feed from FTSE.
  
  The exchange had decided to halt all trades from 12.19pm, shortly before the lunch break, to maintain a fair and orderly market although trades and orders were not affected. The glitch also delayed the pre-opening session by 20 minutes before trading resumed for the afternoon session.
  
  "Our priority is to ensure that the market operates in a fair and orderly manner and there is minimal disruption to trading," Bursa Malaysia's chief executive officer Datuk Yusli Mohamed Yusoff said.
  
  Trading will start as normal today.
  
  However, all FBM indices will not be available via Bursa Malaysia until it has confirmed that the information message processing is in order.

Utterly shambolic!

There is simply no reason for this to be happening so frequently.

It's totally embarrassing to say the least as these trading halts gives an extremely bad impression on OUR stock exchange.

It does not appear to me that the folks in charge of Bursa Malaysia knows how to run a stock exchange at all.

Sigh!

More SC action!

Published on Business Times: SC probe widens

• FRESH from filing its landmark legal suit, the Securities Commission (SC) is probing share trades of more companies for possible price manipulation activities, it was learnt yesterday.
  
  Business Times was told that the regulator is monitoring the situation before deciding if there are enough grounds to justify a full-fledged investigation.
  
  In an e-mail reply to questions sent, the SC said it proactively monitors trading activities on Bursa Malaysia to ensure a fair and orderly market, and that "firm action will be taken where there is evidence of wrongdoing".
  
  Apart from firms linked to Global Trader Europe Ltd, a UK fund, it is believed that the regulator has widened its scope to include Liqua Health Corp Bhd and Welli Multi Corp Bhd.
  
  The Global Trader probe is on possible insider trading. In late February, several counters had brutal limit-down crashes, timed with the UK fund's selling of pledged shares, with margin shortfall.
  
  The latest probe, meanwhile, is on possible manipulation in the trading of Liqua Health and Welli Multi shares. Sources said a senior dealer was interviewed last week on trading related to shares of Liqua Health.
  
  Both companies, with possible accounting irregularities rap hanging over their heads, closed at their lowest level on March 19.
  
  However, some 10 trading days later, shares of Welli Multi and Liqua Health surged by some 400 per cent and 200 per cent respectively.
  
  Liqua Health, which was also linked to the Global Trader probe, announced on Wednesday the appointment of chartered accountants Baker Tilly Monteiro Heong to do a forensic audit on transactions worth RM15 million.
  
  Welli Multi has had a roller-coaster 12 months, with a slew of expired memoranda of understanding on changes in ownership and expansions into China and Indonesia under its belt.
  
  On April 1, it signed a conditional subscription agreement with GEM Global Yield Fund Ltd and GEM Investment Advisors Inc, for the two US-based funds to buy under five per cent of the company for about 50 sen a share.
  
  On further prodding from the stock exchange, Welli Multi said it doesn't know who is behind the fund or its intentions.

Now I do understand that perhaps SC could have done much more than dishing out civil suits. Postings and the comments made on Dali's blog is certainly worth reading SC files landmark civil suit and Cat Out Of The Bag

Could SC done much better? Probably.

Are you happy to see what's happening?

Don't you think that SC by taking these actions indicates that perhaps finally we might see some changes in the local market for good? At least there is hope for a better future, yes? Or is this simply wishful thinking?

Or are you afraid that these actions would ultimately hurt the already fragile market sentiments? Some would argue by saying 'Aiyoh, Malaysian markets needs these buggers around mah and without them, how to cari makan?'

How?

SC Takes Action!

Oh yeah, what a lovely way to start the day. (MU won 1-0 helped too!)

Posted on Star: SC files suit against Repco Low, 9 others over Iris share fraud and on Business Times: SC files landmark suit and posted on the SC website here:

• From September 2005 to May 2006, the price of Iris shares rose by 17 times from RM0.08 to a closing high of RM1.36 per share on the back of very strong demand with an average of 200 million shares being traded daily.
  
  The SC’s investigation found that the manipulation was carried out through a complex layering of the origination of the orders and transactions via foreign intermediaries in several jurisdictions.
  
  The investigation further revealed that the defendants had collectively used numerous trading accounts which contributed to the strong demand for Iris shares during the material period. The foreign defendants and their representatives worked closely with the Malaysian defendants in creating an artificial demand for Iris shares.
  
  The SC was able to unravel the defendants’ activities through painstaking and careful analysis of trading data of more than 100 trading accounts at 15 local and 16 foreign brokers, records of various communication modes between the perpetrators including more than 200,000 e-mail messages, and recording of statements from witnesses locally and overseas.

And fellow blogger Dali commented the following:

• About time we brought some of these leeches to court. The SC should be applauded for having the political will to bring this on. I am sure many people would have put up obstacles and muscle in with their connections to prevent this from eventuating. Is this thanks to the new political landscape? I hope so, the winds of change are blowing through, and the winds of betterment are also best reflected in the way independent oversight bodies conduct themselves, without fear or favour. Plus protecting the minority shareholders and maintaining integrity within the financial system. Hugs and kisses all around. ( http://malaysiafinance.blogspot.com/2008/04/sc-files-landmark-civil-suit-marking.html )

Well it's really about time isn't it?