OMG! They Tried To Explain The DRB Meltdown

In reference to this morning's posting: And DRB Went Into A Meltdown During Trading At Close.. Guess Who Came For Dinner, the financial edge carried the following explanation : here

• Sources said the substantial decline in the stock’s price within 10 minutes prior to the close of trading happened when transaction instructions for three million DRB-Hicom shares by an institutional investor were keyed in wrongly by the brokerage. “It is believed that institutional investors had wanted to buy the shares (at the lower price of RM1.95). But the transaction was keyed in as a sell order instead,” the source told The Edge Financial Daily yesterday.
  The error, which occurred at about 4.50pm, had seen the three million shares transacted at RM1.95 until the closing bell. Prior to this at 4.48pm, the stock had changed hands at RM2.28, unchanged for the day.

Let's get this straight.

First the evidence once more.


Look at the data.

DRB was trading between 2.28 and 2.27.

So according to this source, the said institutional buyer wanted to key in buy. But apparently a mistake was made.

Ooopsy daisy me... the buyer keyed in sell instead.

Now let me be generous... and understanding... and trust for a moment that .... mistakes can indeed be made.

Is this ok?

Is not a problem for me.

Let's believe it is so.

Now let's think about the action again.

This is said to be an institutional investor. ( Hmm.. how I wish the name is given! )

Institutional investor, my friends.

Not any ordinary koptiam share market player hor.

So this INSTITUTIONAL INVESTOR wants to buy.... but the stock had been trading in a tight range all day... mostly between 2.27 and 2.28.

And this INSTITUTIONAL INVESTOR suddenly can come up with the brilliant idea to buy DRB at 1.95? (some 33 bids lower??)

And the order was keyed in at 4.50 pm... just when trading at last starts, just when no subsequent buy/sell transaction can alter this transaction price. ( Which means that this transaction will then become the closing day price! )

My say?

What a load of ketam!!!!!! 

Can anyone give me a 14 million reason why it just so happen that yesterday closing price of DRB is so important?