Allied Farmers will get another shot at NZX 50 - but not yet
There are no changes to the NZX 50 in the latest quarterly index review, but Allied Farmers will get another shot in June after its harsh rejection last month.There was only one change in all of the NZX equity indices this quarter, with Sunseeker Energy r
Robert Smith
Thu, 11 Mar 2010
There are no changes to the NZX 50 in the latest quarterly index review, but Allied Farmers will get another shot in June after its harsh rejection last month.
There was only one change in all of the NZX equity indices this quarter, with Sunseeker Energy removed from the NZX SciTech index and NZAX All index after being suspended from trading on the NZAX with no activity for a year.
Allied Farmers’ once-promised promotion to the NZX 50 has been deferred for three months.
In an undeniably logic and carefully worded statement, the NZX Index Committee said it had “determined that it would consider the index status” of Allied Farmers in the June quarterly review.
“This provides nearly 6 months of trading history since the 21 December 2009 equity-for-debt acquisition of Hanover and United Finance assets by ALF.”
Allied Farmers announced last month it received an email from NZX reversing an earlier advice that its share would be included in the NZX 50.
This saw the reversal of an earlier share price lift that resulted when the market was advised of its inclusion in the index, putting the spotlight back on the NZX’s controversial role as both a regulator and a share market operator
The Securities Commission is currently investigating the trading of Allied Farmers shares after only a select few were told that the finance company was to be included in the top 50 index.
The NZX has since launched a full review of its index processes, including the distinction between monthly and quarterly index review
In today’s statement, NZX confirmed it will no longer issue Preliminary Index Memos at quarterly reviews.
Robert Smith
Thu, 11 Mar 2010
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