KUALA LUMPUR (Sept 29): Supermax Corp Bhd pared its loss today after the High Court overturned the Session Court’s conviction of its former managing director (MD) Datuk Seri Stanley Thai Kim Sim for insider trading in relation to shares in APL Industries Bhd (APLI).
The counter had earlier fallen 6.5% to an intraday low of RM8.17, but then pared its loss to trade at RM8.60 as at 4.02pm, down 14 sen or 1.6% from yesterday's close, Its market capitalisation stood at RM22.1 billion.
Its trading volume increased to 29.2 million shares, exceeding its 200-day average volume of 28.09 million.
Rubber glove counters across the board saw a correction today, with Top Glove Corp Bhd down 21 sen or 2.39% at RM8.56, Hartalega Holdings Bhd down 40 sen or 2.3% at RM17.02, and Kossan Rubber Industries Bhd down 36 sen or 2.5% at RM13.90.
Earlier today, Judicial Commissioner Datuk Azhar Abdul Hamid reversed the Sessions Court’s guilty verdict against Thai made three years ago, as well as the conviction of former remisier Tiong Kiong Choon.
Azhar, in his decision, said he found the convictions “not safe” after hearing the submissions, and set aside the convictions and sentences.
Thai was sentenced to five years’ jail on Nov 24, 2017, and fined RM5 million by the Sessions Court, after he was found guilty of insider trading. Tiong, who was also sentenced to five years in jail, was fined RM10 million.
Insider trading offences under Section 188 of the Capital Markets and Services Act 2007 carry a mandatory punishment of imprisonment not exceeding 10 years and a fine of not less than RM1 million.
Thai was charged with communicating non-public information between Oct 26 and 29, 2007 to Tiong. Tiong was convicted of two counts of disposing of a total of 6.21 million APLI shares while in possession of the same non-public information via accounts belonging to his mother-in-law and his mother.
At the time the offences were committed, Tiong was a licensed intraday trader with a stockbroking company.