The local bourse had earlier in the day plunged to a 23-month low in early trading when investors dumped heavyweights.
The Kuala Lumpur Stock Exchange Composite Index fell to the day's low of 638.5 points before rebounding strongly to close at 673.24 after institutional buying on the Big Three “TMT” stocks - Telekom Malaysia Bhd, Malayan Banking Bhd and Tenaga Nasional Bhd - especially in the last three minutes of trading. The Three “TMT” stocks are government-controlled and represent about 35 percent of the weightage of KLCI giving considerable leverage to the government to manipulate the composite index.
It has been conservatively estimated that RM19 million worth of purchases took place in the last three minutes on Wednesday for the Big Three “TMT” stocks to push up the KLCI to close at 673.24.
In the last three minutes of trading on Wednesday, the prices and volume of trade for the Big Three “TMT” stocks were:
Counter Price @4.57 pm
Price @5 pm Volume
Tenaga 11.90 12.70 700 lots
Maybank 12.60 13.00 700 lots
Telekom 11.50 12.00 700 lots
In the last 30 seconds from 4.59.30 p.m., the KLCI was pushed up 13.18 points from 660.06 to 673.24.
Under normal circumstances, ordinary remisiers or politically-unconnected brokers would be hauled up by the Securities Commission for questioning for any irregular market price, as for instance, if a counter at RM5 suddenly ended trading at RM5.50 with one lot.
Did the Security Commission, and in particular its department AWAS which monitors all buyers and sellers, launch an investigation into the suspicious last-minute multi-million ringgit buys at the KLSE on Wednesday to ascertain the existence of market manipulation?
This is a test of the transparency, integrity and corporate governance of the Kuala Lumpur Stock Exchange and the Securities Commission, whether they will investigate and take action on suspected manipulations of the stock market, without fear or favour. It is time that the Securities Commission speak up.