http://biz.thestar.com.my/news/story.asp?f...95&sec=business

Conspiracy theory of KLK faulty transaction

The order was keyed-in during 4.45-4.50 period which determine the TCP, so if someone flock the system with high price order like KLK case, TCP needs to be at 17.00 as buyer at 17.00 outmuscled the seller side.

I tend to agree with cherroy that this isn't any conspiracy.This is what I observed on my BFE terminal that day:

Someone keyed in a market order to buy KLK during the pre-closing session(1645hr to 1650hr),quantity I can't remember,TCP appeared as RM17 as buyer overwhelm sellers.( There was an uproar in my office then ,thats why I remember).

At 1650hr,Trading at last session starts,but there was no matching for KLK while other stocks were being matched.We were wondering why.(This was later explained when Bursa  in it's explanation clarify that KLK status was at "Reserved",in this state,no matching will be done and the broker initiated the buying market order can actually withdraw the order if he so wish.At this point,we were frantically searching for clients with KLK shares so that we can take advantage of the situation.

Matching at RM17 started at around 4.52pm after the "reserved status"was over,there were still buyers at RM17 after the first round of matching,everyone was so excited that all were calling their clients to sell but it was too late,big sellers came in and sellers overwhelm buyer then.chicken ran away liao!

To me,it's a  case where someone who keyed in a market order did not withdraw it before 1650 hr,could be due to many reasons but most likely,it's a case of oversight especially if that person keyed many market orders for many counters.This practice of market sell and market buy orders during pre-closing was prevalent before ,but after the KLK incident happened,I see very few  yesterday.

This is a good lesson for the big boys,always play play, have a taste of their own medicine.In fact,I think many of us are very happy that the perpetrator have to folk out 0.5m for they have been doing this kind of monkey business  far too often,thereby influenced the closing price.

If it is a conspiracy,there got to be a motive ,In this case,if try to influence the closing price,then they have suceeded but very costly and even a 3 year old knows that the price will fall back the next day.If the motive is to influence the FKLI closing,it is not month end and the perpetrator should also know that the FKLI opening next day will be down too since the KLK price will open lower.

We can expect less monkey business during the closing from now on.Something to cheer