This is what can happen in a market without free flow of information. On one hand, they were saying that they have secured 70 over percent of ramunia stocks and is on course to take the company private. after the news was announced on January 2008, ( UPDATE 1-Malaysia's Ramunia jumps on MISC takeover
Thu Jan 24, 2008 8:53am IST http://in.reuters.com/article/asiaCompanyAndMarkets/idINKLR1178720080124 ) During the announcement, Ramunia went up to an all time high of 1.90 from around RM1 before the announcement. If i understand it correctly, they would have purchase the stocks at lower price and make the announcement before selling ti at 1.9 or averaging at 1.5 making it a clean 50% profit. The volume also surged to 60 million transactions during these period too. It was hanging around 1.7 to 1.4 up until today's announcement that it will not longer be taking over the company. So, what has all the 70% shares MISC has been holding all these while gone to? Even in october, there were news that Ramunia's privatisation is still on track and MISC is holding 70% of its shares. ( Ramunia agrees to MISC takeover terms http://www.upstreamonline.com/live/article164165.ece )
It is really clear to see how those in position manipulate the news to take advantage of the situation. I hope I am wrong on this. :)
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