Malaysia's financial markets regulator said Tuesday it is investigating allegations of manipulation of shares on the country's stock exchange, but it would not say whether the probe includes activities by a U.S.-based hedge fund.

The investigations relating to the manipulation of certain shares are ongoing and individuals acquainted with the facts of the cases have been called in to assist, a Securities Commission spokeswoman told Dow Jones Newswires.

The official, speaking on condition of anonymity, declined to say if the commission is working with the U.S. Securities and Exchange Commission in its probe.

A Bloomberg report on Monday said the U.S. commission is investigating U.S.-based hedge fund Aeneas Capital Management L.P. after some of its funds suffered big losses that reportedly followed investments in Malaysian shares such as smart-card maker Iris Corp., poultry-producer Farm's Best Bhd., and Internet-related systems provider Mobif Bhd.

Malaysia's Securities Commission will take the necessary action where there is evidence of deliberate conduct or attempt to interfere with the genuine forces of supply and demand, its spokeswoman said.

Separately, Bursa Malaysia Bhd., which operates the stock exchange, said it does not disclose information on stocks that are being investigated as it may prejudice its investigative efforts, an exchange official said in an e-mail.

According to Bursa filings from early 2006, Aeneas bought and sold substantial amounts of shares in companies such as Iris, Mobif, and Farm's Best.

Investment