Jardine Matheson's $41 billion tumble no fat finger error says Singapore bourse (updated)

Jardine Cycle & Carriage

24/01/2019 11:54

(Updates with Singapore Exchange, company statements)
    SINGAPORE, Jan 24 (Reuters) - Jardine Matheson Holdings Ltd
 JARD.SI  shares listed in Singapore traded down 83 percent on
Thursday, wiping nearly $41 billion off its market value, before
rebounding in what the Singapore Exchange said was orderly
trading and not a "fat finger" error.
    Some 167,500 shares in the Hong Kong-headquartered
conglomerate traded at $10.99 versus Wednesday's closing price
of $66.47, traders said.
    The trades were executed at a price that was transparent to
the market and there had been enough time for participants to
react, the Singapore Exchange concluded after reviewing the
matter. It therefore found no basis to cancel the transactions.
    Sellers could have withdrawn their orders if they did not
wish to sell at that price, the exchange said in a statement.
    "Trading was orderly and there was no sign of manipulation.
We have also ascertained that the orders were not due to fat
finger errors or any malfunctioning systems on the part of the
participants," it said.
    The stock later bounced back to trade at $66.80.
    One local trader said it looked like a "fat finger" trade
and the seller likely requested the exchange cancel the trade.
    Reuters was not able to identify broker involved in the
trade.  
    "The transaction was divided into 164 trades, suggesting
there could be more than a hundred counterparts behind this
trade," said CMC Markets analyst Margaret Yang.
    "This makes it an extremely difficult task for the stock
exchange to recall or cancel it, and the seller will need to
bear the losses," she said.
    Jardine Matheson said in a statement it believed an
electronic trading error was the cause. 
    The company operates in a variety of businesses including
auto sales, luxury hotels, property development, financial
services and food retailing.

 (Reporting by Aradhana Aravindan and Anshuman Daga; editing by
Darren Schuettler and Jason Neely)
 ((John.Geddie@thomsonreuters.com; +65 6403 5578; Reuters
Messaging: john.geddie.thomsonreuters.com@reuters.net))