KUALA LUMPUR (May 6): Bursa Malaysia has publicly reprimanded a share dealer, Lo Ling, for engaging in manipulative trading activities in the securities of Milux Corp Bhd.

It has also suspended Lo from being a registered person of Bursa for 10 months, besides imposing a fine of RM78,000 against him.

“In addition, Lo Ling is required to undergo training on conduct or professionalism of Dealer’s Representatives offences,” the exchange said in a statement.

At the time of breach, Bursa said Lo was a commissioned dealer’s representative of AmInvestment Bank Bhd at its Damansara Utama branch office.

Bursa said Lo had contravened the provisions of Rules 3.14(d), (e) & (g) and 5.01(b) of the Rules of Bursa Malaysia Securities and paragraph 1.1(1)(h) of Directives No. 5-001 of the Participating Organisations’ Directives and Guidance.

“The breaches by Lo Ling were in relation to the manipulative trading activities in the securities of Milux undertaken in the accounts of three clients at two different periods each spanning over several months,” said Bursa.

In one period, Bursa said the execution of on-market coordinated across trades by Lo among his clients involved entries of opposing orders at the same price and in many instances, in close proximity of time that took on each other’s opposing trades (cross trades).

“These cross trades had generated artificial trading activity and volume for Milux shares,” said Bursa.

In another instance, Lo had executed bidding up trades (i.e positive price changes from the last traded price/reference price) by repeatedly taking the seller at the seller’s price.

“This caused the price of Milux to rise and created an appearance of upward trend of the share price or maintained the share price at certain price levels,” said Bursa.

Milux’s share price closed at 78 sen today, down two sen or 2.5% from yesterday. The stock has been trading sideways over the past one year between 76 sen and 78 sen. Year to date it has appreciated some 11%.