The Singapore Straits Times 30th March 2001

Nothing unusual, says chairman of last-minute jump in Maybank, Telekom and Tenaga share prices on March 21

KUALA LUMPUR - The Kuala Lumpur Stock Exchange (KLSE) yesterday brushed aside allegations of price manipulation in blue chips to shore up a sliding Malaysian market.

On March 21, the key share index shot up more than 2 per cent in the last minute of trade as shares in the country's three biggest firms - Telekom, Maybank and Tenaga - staged a strong rebound.

'When you talk about movement in the marketplace, it is not really that unusual or something that you don't expect to see,' KLSE executive chairman Mohd Azlan Hashim told reporters.

Dominant power firm Tenaga, top bank Maybank and telephone company Telekom together make up almost 40 per cent of the index's capitalisation and wield a powerful influence on market direction.Telekom shares soared 70 sen to close at RM12 after having been down by 60 sen during the day.

Maybank ended up 30 sen at RM13 while Tenaga jumped 80 sen to RM12.70.Their sudden recovery helped the index close up 16.74 points at 673.24 after having plunged almost 3 per cent to hit a 23-month intra-day low of 638.51.

It prompted opposition-party leaders to call for a probe into possible institutional manipulation.

Corporate chieftain Tan Sri Ramon Navaratnam, adviser to SungeiWay Group, said the movement should be investigated to protect the market's image.

'It is unusual and if it's a coincidence, that's fine but for the sake of good corporate governance, image and perception, it should be investigated,' he told Reuters.

Earlier on Wednesday, KLSE said from June 1, it will implement new rules that will make directors of listed firms more accountable to shareholders.

Under the new rules, directors of Malaysian firms must attend training programmes prescribed by the KLSE and make additional statements in their companies' annual reports, detailing their responsibility in preparing the accounts and the state of their internal controls.

Independent directors will be given greater prominence, rights and board representation.

The new regulations also expand on transactions with related parties and clamp down on inter-company loans. --Reuters