Trading glitch hits post-split Kraft
Kraft Foods spun off its global snacks business, Mondelez International, last week and was immediately hit with another stock-trading glitch on Wall Street.
Dozens of trades had to be cancelled when a broker error caused shares to soar shortly after the opening bell on Wednesday.
Shares in Kraft Foods Group, now slimmed down to a North American grocery business, jumped more than 25% within a minute of the market’s open on only its second day of regular trading.
Shares opened the day at $US45.55 and closed at $US44.87, down 1.2%. The cancelled trades ran as high as $US58.54 a share.
After the glitch, market watchers reacted with a variety of theories, including one that a computerised trading program had been programmed to try to game the market.
Despite the glitch, both new stocks did well for their first two days.
Kraft was up 4.1% last week to $US46.46 a share, while Mondelez was up 3.2% to $US27.92.
Kraft ended the week at $US47.20 and Mondelez at $US28.48.
In this part of the world, the former Kraft businesses are all part of Mondolez.
A company spokeswoman told FIW there was no change to either the Kraft Foods Australia New Zealand or Cadbury NZ business in either name or operation.
“So it is very much business as usual for us,” she says.
“While we expect to transition to the corporate name and identity of Mondelez International in the second half of 2013, Cadbury will remain as our key consumer brand in the New Zealand marketplace.”