Olam, CEFC: 2 trading cases needing scrutiny

THE volatility in China's stock market may be occupying most of the headlines but this should not distract attention from two recent occurrences in the local stock market that warrant closer regulatory scrutiny. The first involves commodities supply chain group Olam International and the second, petrochemical trader CEFC International.

For Olam, there is a quiet feeling of outrage among many market observers following the sudden spike up in its share price just prior to suspension of trading last Friday and the subsequent announcement of the entry of Mitsubishi with a 20 per cent stake.

Among the more common questions being asked are - not surprisingly - who bought on Thursday when the stock rose 11 per cent and again on Friday when it gained a further 2 per cent in the one hour prior to suspension, and whether regulators will be examining the relevant trades to see if any rules have been broken.