Was it the work of syndicates?

THE local stock market went into a tailspin last week.

Some quarters were quick to blame it on uncertainty over the upcoming general election.

The FBM KLCI ended 40.81 points lower on January 21 to 1,635.63 points, its largest single day drop since October 2011.

The general election is still going to take place, yet the selling pressure seems to have abided.

Politicians are an easy punching bag as they more often than not do not talk back.

Blaming them and the up coming general election is the easiest way to explain the sudden drop at the equity markets last week.

Market players, however, say that there is sinister reason why the market suddenly fell.

They are blaming it on a news report, which stated that stock market syndicates have managed to access confidential CDS information on Bursa Malaysia.

The syndicates have used this to contact the individual CDS account holders and recommend to them which shares to buy or even offer to buy their shares .

Based on what is being said by the big market punters, the content of the report is credible.

If this is true, investors should be concerned as the market can no longer be seen as having a level playing field.

Also, how did this information pass through to the syndicates? Did they pay money for the information? Who did they pay the money to?

These are some of the questions that the big stock market investors are asking their friends in private conversations.

The authorities in charge of keeping our CDS account information have been silent on the matter, leaving both the big and small investors in the same boat - the boat of uncertainty.

The longer they have to wait for this answers, the longer ordinary investors will have to wait for the market to heat up again.