Panel sends NZX a please explain

By MARK FRYER

The stock exchange's policemen, the market surveillance panel, this week mounted a new inquiry - into the stock exchange.

The exchange received a panel letter yesterday asking whether it could explain why its shares were so exuberant between Friday and Wednesday. They began Friday at $6.88 and ended Wednesday at $7.62.

No, replied NZX, it possessed no information it was required to release which might explain the rise.

However, it observed, January had been a much busier month for the market than January last year, the exchange had released its profit result on February 10 and, late last year, it had said it was working to fix the technical problems that had sometimes stopped trading.

Nor could NZX think of any material information that it was about to reveal which might have pushed up the price - although it does plan to make an announcement soon about a new index.

And no, no one representing the NZX had said anything which might have resulted in the price rise.

However, the exchange did point out that NZX is "a tightly held stock for which the level of demand can cause high volatility in price".

Whatever the reason, it seems to have faded; NZX shares ended yesterday at $7.45, down 17c on the day.