SC should investigate whether there were insider trading on AirAsia’s shares
[Updates: As at 4 pm today (12-8-2011) the price of the AirAsia’s was traded at RM3.48. Prior to its suspension on 8-8-2011 the said share has hit an unprecedented high of about RM4.10 on Friday (5-8-2011 – 2 days before it was suspended from trading pending the formal announcement of the so-called share swap agreement being reached) only to be closed at RM3.95.
Ever since the lifting of the suspension of trading of AirAsia’s share, it has lost almost 50 Sen, equivalent to about 13%, as at 4 pm today. I believe that it will go down further in days to come. As I have said before, the AirAAsia share has been bullish since 21-7-2011.
I am certain that the whole transactions of the said AirAsia’s shares for the last few days were on the computer screen of the Security Commission and the record of which can be easily ascertain by the Security Commission. Food for thought for the Security Commission.]
Since 21-7-2011 AirAsia’s shares have been on the unprecedented upbeat hitting as high as RM4.16 per share, in HERE, and MAS registered a movement between the range of 40 Sen, in HERE. On Saturday the 6-8-2011,The Malaysian Insider, published a sources story with clinical accuracy and perfect timing, in HERE. On Friday, one day before that spot on sources story by the said Malaysian Insider, AirAsia’s share closed at RM3.95, in HERE, and MAS RM1.62. On Monday 8-8-2011 (2 days later) after the publication of that famous sources story both AirAsia and MAS were suspended from trading. How coincidental!
With all the favourable publicities on the so-called share swap, I was so certain that the share price of AirAsia will soar to another height because of its achievement of penetrating into the management of MAS, in HERE. I was so impressed with Tan Sri Tony Fernandes’ art of negotiation with Khazanah in such secrecy that I concluded that the shares of both counter will be on the upbeat like what had happened to AirAsia from 21-7-2011 until it was suspended. But I was proven wrong when AirAsia’s shares took a dive from RM3.92 (before it was suspended ) to RM3.68 when it was opened for trading after the so-called share swap was officially signed on 9-8-2011.
10-8-2011, The investor.com said the following on the trading of MAS and AirAsia shares when both counters resumed trading: “At 9.10am, MAS jumped 24 sen to RM1.84 with 19.8 million shares done, while AirAsia lost 27 sen to RM3.68 with 5.48 million shares traded.”, in HERE.
As at 12 pm today, AirAsia was the most active counter (has traded 315, 693,00 shares within 3 hours) and still on the downward trend dropping by 0.28% and ironically MAS, the “ailing” national carrier, up by 2.91%, in HERE. It would appear that there was profit takings by certain quarters.
In view of the sequence of the above events, Security Commission and/or KLSE should look into the trading of AirAsia’s shares to investigate whether or not there are insider trading. I leave it to the authorities to act in the interest of the investing public.