UPDATED The roller coaster ride for Allied Farmers share price has been influenced by confusing activity at the NZX.Allied Farmers announced today it received an email from NZX reversing an earlier advice that its share would be included in the NZX 50 ind
UPDATED The roller coaster ride for Allied Farmers share price has been influenced by confusing activity at the NZX.
Allied Farmers announced today it received an email from NZX reversing an earlier advice that its share would be included in the NZX 50 index.
As a result, an earlier share price lift that resulted when the market was advised of its inclusion in the index, was reversed.
Once the market became aware of the reversal this morning, Allied Farmers share price fell more than 10%.
Allied Farmers managing director Rob Alloway told NBR he wrote to NZX chief executive Mark Weldon this morning seeking an explanation but received no reply by late this afternoon.
His particular concern was that it seemed brokerages were aware of the inclusion into the index and there was institutional interest in the company as a result.
There was no public announcement.
When share price went up and then rapidly down again, Mr Alloway said he felt that Allied Farmers investors were disadvantaged.
The NZX has failed to return calls as of publishing time.
Allied Farmers posted a notification on the stock exchange stating it had request and explanation of the reversal for the NZX.
“For our advice and our own modelling we are at a loss to see why Allied Farmers shares on all known criteria should not be in the index immediately. By our modelling Allied Farmers shares would easily enter the NZX 50.”
Allied Farmers said it would keep the market informed on further correspondence from the NZX.
This afternoon, Allied Farmers shares were 11c, down 11.29% (NZX:ALF).
