SEC sets probe on insider trading

The Securities and Exchange Commission (SEC) has ordered the Philippine Stock Exchange (PSE) to look into another possible insider trading case, this time involving Philex Mining Corp. stocks.

Jose Aquino, director of the SEC’s Compliance and Enforcement Department, told the PSE to "make a necessary investigation if there was a possible insider trading" that involved Philex shares from June 15-20, 2001.

Aquino said that based on their findings, "there seemed to be a suspiciously heightened buying interest on Philex" during the period which caused the stock price to soar 61 percent from P0.245 to P0.40.

The SEC official said a review of the corporate disclosures of Philex showed its 81.8-percent subsidiary, Canadian-listed company Philex Gold Inc., said it will be issuing a press release in Canada at 8 a.m. on June 15 regarding additional drilling results at the Boyongan Property in Surigao del Norte, a joint venture exploration between Philex Gold and Anglo American Exploration (Philippines).

Philex said the Boyongan drilling, which started in the second quarter of last year, suggests a potentially large deposit of sufficiently favorable copper and gold grades.

Aquino said upon checking with the PSE’s Disclosure Department, they were told that the said press release was received by the PSE on Friday, June 15 at 1:02 p.m. Manila time and was circulated thereafter on Monday, June 18.

While he said the press statement may have justified the increase in Philex’s stocks, the historical buyer/seller information showed the suspicious upsurge in demand even before the said release was made public. – Conrado Diaz, Jr.