Wednesday, 19 August 2009
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Reserve Bank of Fiji Sponsored Market Manipulation
Securities markets operate as mechanisms for the facilitation of the transfer of investible funds from economic agents in financial surplus to those in financial deficit. Market prices influence private and public economic planning and the corresponding allocation of resources.
In the securities market context, the efficient allocation of capital is dependent on the accuracy and timely disclosure of market information that is reflected in the market price.
The distortion of market information and the resultant inefficient pricing based on that distorted information leads to inaccurate assumptions of future profitability, therefore channeling funds to listed securities that may create lower returns than other alternatives.
The announcement by Frank yesterday that the administration of the Capital Markets Development Authority (CMDA) Act will transfer to the Reserve Bank of Fiji (RBF) with effect from 13th August, 2009 will be disastrous for our already defunct securities market.
The CMDA have lost what little, if any independence it had left since the 2006 coup and the result will be the bias in its supervision, investigative powers and enforcement provisions which will leave rouge traders and government controlled institutional investors free to manipulate market prices with impunity to the detriment of our ordinary mom and pop investors. It will also enable secretive off-market transfers to occur at heavily discounted share prices undisclosed to the public.
In sum, this move is no doubt the disguise for the sale of Amalgamated Telecom Holdings Limited (ATHL) in the name of “greater efficiency and effectiveness” but most importantly it is State sponsored Market Manipulation which is a CRIME MORONS!
وباختصار، هذه الخطوة لا شك ستار لبيع من دمجها تيليكوم القابضة المحدودة (ATHL) في اسم “ أكبر فعالية وكفاءة ” ولكنه والأهم الدولة برعاية "السوق معالجة" وهو MORONS الجريمة!
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