Air NZ shares leap after suspension lifted

5:15 pm

Shares in Air New Zealand jumped about 30 per cent today after the Stock Exchange lifted a controversial trading suspension on the troubled carrier at around 2.15pm.

The unrestricted B shares initially jumped 9c, 36 per cent, to 34 cents before easing back to 32 cents while the residents-only A shares rose 8c, 30 per cent, to 35 cents before easing back to 33 cents.

The shares were placed on a trading halt when the market opened today after comments by Prime Minister Helen Clark yesterday that shareholders should hang onto their shares.

Both Finance Minister Michael Cullen and Air NZ said it believed Miss Clark's comments had been misconstrued by the media.

However, the Australian Stock Exchange said it would maintain the suspension until the ASX was satisfied that investors had enough information to determine their value.

The ASX halted trade in Air New Zealand's Australian-listed shares - which account for about 20 percent of Air NZ stock - on September 13 at 59 Australian cents.

"ASX was not satisfied and remains not satisfied that the market was sufficiently informed to make any investment decision on Air New Zealand securities trading over here," an ASX spokesman told Reuters.

Both the ASX and the New Zealand Stock Exchange follow a "continuous disclosure" policy which requires companies to inform the market of factors that would have a material impact on, or alter expectations of, a company's performance.

"The suspension is for an indefinite period and obviously remains indefinite until such time ... as ASX is satisfied that the market is sufficiently informed to make reasonable decisions on the value of those securities," the spokesman said.

"That is not the case, we believe, at the moment."

- NZPA

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