NZX halts mid-cap fund trading after entry error causes price spike

Several orders were entered in error into the NZX Trading System and matched, prompting a spike of more than 10%, the stock exchange watchdog says. 

BUSINESSDESK: Trading in the NZX MidCap Index Fund was halted after an entry error caused the share price to spike 79%.

Several orders were entered in error into the NZX Trading System and matched, prompting a spike of more than 10%, the stock exchange watchdog says.

The price jumped to $3.454 from $2.489 this afternoon, according to Reuters data. Trading resumed at 4.30pm in Wellington and the stock was up 2% to $2.489.

"NZXR has determined that an error was made as to the matching of the price and the securities and in order to ensure the integrity of the market NZXR has cancelled the affected trades," the regulator says.

The fund is one of the stock exchange's Smartshares exchange traded fund tracking listed mid-sized companies. Exchange traded funds trade like a single security and are made up of a basket of securities to reflect the index they are tracking.

The MidCap fund's net tangible assets were $2.416 yesterday, and includes securities such as Cavalier Corp, Diligent Board Member Services, Mainfreight, Michael Hill International, NZX and Trade Me.