The stock exchange is seeking an urgent Securities Commission inquiry over unusual trading in Allied Farmers shares that occurred yesterday afternoon.

Around 350,000 Allied Farmers shares changed hands yesterday, the most since November 2006, resulting in a closing price of 20c, down 8c for the day.

The NZX said it made enquiries to the company and to the originating broker. It has now referred the matter to the Securities Commission for “urgent inquiry” under the commission’s statutory powers.

NZX says it will not comment further on the issue.

Relationships between price movements and traded volumes are often worth studying to find out where interesting things are happening in the sharemarket.

If prices fall on traded volumes, it can be assumed an informed investor is disposing of shares and is willing to do so at buyer's lower bids. Of course, purely random forces may be at work but usually there is superior knowledge behind a lift in trading.

With this in mind let's take a look at Fisher & Paykel Appliances.