Alauddin Mohd Sheriff JCA:

[1] This is an appeal against the decision of the High Court Kuala Lumpur, which had allowed the respondent's claim and dismissed the appellant's counterclaim with costs.

[2] The respondent is a stockbroking firm and has been in this business since 1973. Previously the respondent was known as Othman & Ng Securities Sdn Bhd.

[3] The appellant is a client of the respondent. The appellant opened a trading account with the respondent sometime in 1990. The appellant's application to open the said trading account with the respondent was approved and given account no 16648.

[4] On 6 March 1990, the appellant signed a margin agreement with the respondent which has the effect of converting the appellant's retail account no 16648 into a margin account bearing the same number.

[5] The appellant traded in his account from 12 February 1990 to 6 March 1990 under his trading account no 16648 and thereafter under his margin account. A licensed dealer's representative (PW6) was assigned to handle the appellant's account and she was assisted by PW5, an administrative assistant.

[6] On 27 August 1990 the appellant signed another margin agreement with the respondent. This