| Wed 11 Jun 2003, 10:13 | | Finger trouble' blamed for leap in Nail shares |
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Senior Business Correspondent
THE surveillance department at the JSE Securities Exchange SA sat up and took notice of unusual movements in New Africa Investment Limited's (Nail's) share price this week, and came to the conclusion that "finger trouble" was to blame.
Nail's share price soared 52,7%, to R9,62, on Monday, raising eyebrows in the market as the group recently invited bids for its assets. The share reversed its gains yesterday, losing 32,4% to close at R6,50 after 49 shares changed hands in one deal worth R319.
Peter Redman, senior technical adviser in the JSE surveillance department, confirmed yesterday that the stock exchange had investigated the odd share-price movement and followed it up with Nail's stockbrokers.
"We are satisfied that it was not manipulation of the share price, but simple finger trouble," he said. If the share had continued to trade at R9,62, his department would have continued to look into the matter. In terms of the JSE's rules on trades in error, Monday's trade could not be reversed, Redman said.
While Nail was one of the best performers on the JSE on Monday, Kagiso Media, which is known to be keen on Nail's media assets as part of a consortium involving Johnnic Communications and Caxton, was among the losers, dipping 20c to close.
Yesterday, the roles were reversed with Kagiso gaining 20c.
Kagiso's share price has improved since Nail's announced it was looking for buyers.
Nail spokesman David Barritt said on Monday that the group could not explain the sudden share price movement.
"The proof of the pudding is seeing how long the share price will maintain that level," he said.
Nail's media assets include a share in radio advertising house Radmark, stakes in radio stations Jacaranda, KFM and Kaya FM, 100% of Sowetan and 50% of Sowetan Sunday World and New Africa Books.
Jun 11 2003 07:09:07:000AM Patrick Wadula Business Day 1st Edition
