Company Name : KNM GROUP BHD 
Stock Name/Code : KNM - 7164 
Disseminated Datetime : 16-05-2008 16:53:46
Headline : KNM - NOTICE OF RIGHTS ENTITLEMENT 

LISTING'S CIRCULAR NO. L/Q : 49882 OF 2008
Renounceable rights issue of up to 267,807,215 new ordinary shares of RM0.25
each held in KNM (Rights Shares) at an issue price of RM4.00 per Rights Share

on the basis of one (1) Rights Share for every four (4) existing ordinary
shares of RM0.25 held in KNM.

Kindly be advised of the following :

1) The Rights commence of trading : [ 3 June 2008 ]

2) The Date of Despatch of the Prospectus and Provisional Allotment Letter of
Offer :
[ 3 June 2008 ]

3) The last day and time for Acceptance, Renunciation and Payment :
[ 17 June 2008 @ 5:00pm ]

4) The Rights cease quotation : [ 10 June 2008 ]

The Stock Short Name, Number and ISIN Code [ KNM-OR, 7164OR and MYL7164OR009 ]
respectively

MANAGER, SEC. MARKET

stock market also monday blue

           

KNM Rights issue at a price of RM4,

Ratio 1 for four,

Rights will be traded from 3/06/08 to 10/06/08.
Closing date for subscription 17/06/08,

It is not normal for FKLI to discount 20+ points to the cash market unless something big bearish factor in few days time. Bare in mind, June contract only has 6 days to run only aka for those shorting one, cash market need to drop more than 20+ points in order to make money. Even a flat market, those short at current level will be burning money already.

Only 2 possibility I can think of:

May be it is those long position people cut loss after breaching some technical support level or they knew something we don't know.

Edited, FKLI recover, seems like cut loss position is the reason. Oppotunities.

AdamG1981,

You cover your short position quite well this time.