Kepong Tumbles 18 Percent on Broker Error

Kuala Lumpur Kepong Bhd, Malaysia’s third-biggest palm-oil producer, tumbled the most in 11 years after the stock exchange said an erroneous transaction yesterday drove the shares 24 per cent higher.

The stock slid 18 percent to RM14 at 9:44 a.m. local time, set for the steepest decline since Sept 1, 1998, making it the worst performer on the FTSE Bursa Malaysia KLCI Index today. The share decline dragged the benchmark stock index 0.2 per cent lower.

The exchange said it rejected a request from an unidentified broker to cancel the erroneous trade. The shares soared to RM17 in the last 10 minutes of trading yesterday, the highest level since July 2, 2008.

The exchange “has reviewed the request for cancellation of a Kuala Lumpur Kepong trade and has decided not to approve the request,” it said in a statement yesterday. Source : Business Times

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