Publicly listed BW Resources Corp. (BWRC) appealed to the Philippine Stock Exchange (PSE) yesterday to investigate the leakage of unofficial results of its investigation of alleged insider trading of BWRC shares.
In a statement, BWRC said it received reports over the weekened that a PSE official called in media men covering the exchange last Friday and released the unofficial report.
Expressing serious concern over the leakage, Eduardo Lim Jr., BWRC president, said the act of the government official pre-empts the official results of the PSE findings, which is unfair to the listed company and its stockholders.
"We are concerned that such practice of releasing unofficial information may be used as a tool for market play to deteriorate the share price, creating a situation of panic among shareholders and putting the listed company at a disadvantage," Lim declared. "In this situation, only intra day shortsellers will benefit at the expenses of the company and its shareholders," Lim added. "The destabilization of the share price results in millions of pesos in losses for the stockholders."
"It is important that this practice be abated as it not only sends wrong signals to the investors, but also undermines the integrity and credibility of the exchange as an institution," Lim said.
Meanwhile, the Senate will try to unlock answers to alleged trading manipulations in BW Resources Corp. right where it happened -- at the trading floor of the Philippine Stock Exchange.
Sen. Raul Roco, chairman of the Senate committee on banks, financial institutions and currencies, was at the Ortigas-based bourse yesterday to familiarize himself with stock transactions in preparation for the committee's scheduled hearing at the PSE on the BW case tomorrow (Jan. 19).
"We have received all the reports of the brokers on the (BW) transactions but since these are separate, . . . we cannot reconcile who the buyers and who the sellers are," he told stock market reporters.
The Senate committee is expected to summon PSE officials, involved members-brokers and the Securities and Exchange Commission to shed light on the BW probe.