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 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.

11 thoughts on “SC should investigate whether there were insider trading on AirAsia’s shares

  1. m8

    and also please check every company that make major announcement, the price up skyrocket before market close maybe someone inside company take advantage/Bursa and people like us lost opportunities.

  2. Economist Kampong

    YB CK Wee

    Let us suggest an angle for the MACC, the SC and Bursa to investigate. Bank borrowings were used by party/parties that designed/knew of the deal in the making.

    Another hint to MACC – this party/parties would also stand to gain more from the deal by pumping up the AA prices to as high a level as possible.

    Now that the deal had been done, it is time to pay up the short term loan. Hence the profit taking on AS shares.

    Th above pointers should tell these authorities WHAT to look for, WHERE to look for and WHO to look for. This is ‘elementary’ – as Sherlock Holmes would have said.

    Unless of course suddenly the MACC, SC and Bursa became or were sensitized to the asian wisdom of the THREE MONKEYS of See no evil, Hear no evil and Speak no evil!!

    Welcome to MALAYSIA — the semua boleh land.

    Economist kampong

  3. Fatso

    Not surprising, YB.

    AA shares were inflated like a balloon while MAS shares were deflated at the opportune moment when they inked the deal to the benefit of the debt laden company.

    Now AA balloon is deflating due to the market forces and Tony has successfully transferred his personal shares to MAS

  4. Porno Watcher

    Security Commission is blind when it comes to anything in connections with 4th floor. Even if they were to look at the right screen in SC, they will still unable to smell the rats! SC is only interested in chasing after the ikan bilis and allow big fish to swallow everything.

    The AS AirAsia share swap is most disgraceful.

  5. Poor Rakyat

    First they moved into MAS board. Now reported to have moved into MAHB. Where else? Tony please tell us so that the nation can prepare itself for more shocks.


    How Tony F everybody. The people in Khazanah should all be sacked.

    Friday, August 12, 2011
    Tony Fernandes has dumped AirAsia: Time for fans to face misplaced devotion
    In all of the reporting and fashion magazine like chatter about the AirAsia-MAS share swap there seems to have been a willful ignorance of one facet of the deal: That Tony Fernandes, CEO, major shareholder and founder of AirAsia, has sold 10% of his 26% shareholding in AirAsia for a stake in AirAsia’s competitor , MAS.
    This is a sale by an insiders insider, but it seems that local and foreign media as well as a number of analysts, like jilted lovers unable to face rejection, are doing all they can to skirt around the issue, clinging to the hope that Tony still loves them and AirAsia. Fortunately for Tony these are the types who would actually believe it when told “Of course I will still respect you in the morning”.

    According to THE STAR:
    Put differently Tony’s investment in MAS has grown while that of Khazanah’s in the LCC, to date, is unfortunately in the red. The deal’s backers staunchly dismiss such short-sightedness: “We are talking about loose change here. What’s the point of arguing over that when there’s so much more money to be made down the road.”

    So, if about RM 260 million in gains realized so far on the share swap (see calculations below) is “small change”, and ” there’s so much more money to be made down the road”; then why is not Tony keeping his AirAsia stock?

    The so-called multi-billionaire could easily borrow against his AirAsia shareholding and the MAS stock to pay for the latter.That way he gets to keep all the benefit of
    “so much more money to be made down the road.”
    There may also be tax benefits in using debt, an issue that surely a multi-billionaire would be concerned with.

    Indeed, taking on debt is exactly hat he appears to be doing in regards to his investments in his Lotus Team and other related companies,and more recently in his reported purchase of the Queens Park Rangers football team,at a price tag rumoured to be STG 100 million( about RM 488 million).
    Clearly, Tony believes more in Lotus and QPR than he does AirAsia.

    By Thursday 10 August 2011 the spread between MAS and AirAsia share prices had widened giving Tony a gain of RM RM 261 971 170!
    Calculations were based on the pre-suspension closing price of RM 3.95 for AirAsia and RM 1.60 for MAS.The closing prices on Thursday 10 August 2011 were RM 3.50 and RM 1.80 respectively,
    The workings are as follows:

    AirAsia shares sold by Tony to Khazanah =277,650,600
    Loss on shares to Khazanah, and gain to Tony =RM 124 942 770

    MAS shares sold by Khazanah to Tony= 685,142,000

    Gain on shares to Tony, and loss to Khazanah= RM 137 028 400

    NET GAIN TO TONY: RM 261 971 170

    posted by ganesh sahathevan @ 11:08 PM

  7. Anonymous

    Profiteering is the word. Azman Mokhtar played idiot by allowing such dirty deal to go through. Can’t wait to see Azman quietly negotiate another share swap with Tony where AirAsia get 20% Khazanah share and Khazanah gets 2% and Tony will be the new Khazanah CEO. Syabas, Azman you are a great guy that Malaysia cannot do without.

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