Richina queried about price share drop

Bermuda-registered, New Zealand listed company Richina Pacific (RPL) said today a negative newsletter analysis could be behind the steep fall in its share price.

The company, which has its headquarters in Malaysia but has most of its investment in China, has been queried by the stock exchange about the fall in its share price since Friday on higher than usual volumes.

"We note that RPL shares were traded this afternoon on the NZSX Market at 38c per share," the exchange wrote yesterday. "This is a decrease of 11c per share (22.4 per cent) since market close on Friday 6 October, 2006," the exchange wrote.

"We also note higher than usual volumes traded today (Monday)."

The company replied today that it was unaware of any reasons within its operations for the drop.

"There has been no fundamental change in the operating status, or the outlook for any of its trading operations, since directors last reported to shareholders and the exchange, as confirmed in the half year report distributed to shareholders on September 29."

"We are however aware that a market analysis, in its subscription-based monthly newsletter issued today, has indicated that the Richina Pacific shares are, in their opinion, a sell proposition, and that analyst is selling its modest holdings in Richina Pacific shares.

The analysis was by Securities Research Company. It was not immediately available to the company.

In August, Richina said its half-year net profit rose 15 per cent and it expected improvements to continue to the full year.

It booked a net after-tax profit of US$3.6 million ($5.7 million) for the six months to June 30, on a 2.1 per cent increase in revenue to US$240 million.

New Zealand property company Mainzeal Property and Construction recovered from previous significant losses on two major projects in Auckland.

Richina shares were down 2c to 40c today. They have traded between 61c and 38c in the last year.

- NZPA