The Australian Securities Exchange (ASX) has asked Hutchison Telecom why the price of its shares has increased by 25 per cent in a single week.
The ASX and Hutchison exchanged letters about the matter today. Hutchison’s share price can be seen here.
Hutchison, which represents half of Vodafone Hutchison Australia, replied that it did not know why its shares jumped from 4.8 cents on 19 September to a high of 6 cents today.
“The company is not aware of any information concerning it that has not been announced to the market which, if it were known by some in the market, could explain the recent trading in its securities,” Hutchison said in its reply.
“The company has no other explanation for the recent trading in its securities.”
Listing Rule 3.1 at the ASX requires listed entities to notify the ASX immediately about any reason there could be a material effect on the price or value of the entity’s securities.
Hutchison said it was in compliance with that and all other listing rules.
An ASX spokeswoman said the matter is resolved for now. "We are satisfied with their response and will continue to monitor the company, as we do with all ASX-listed entities."
IBRS analyst Guy Cranswick said he couldn't explain the share price spike any more than ASX.
"Stocks of that price range can be subject to concerted price movement activity to spur rises during a day's trade," he said.
"If it continues -- which may not happen now that the ASX has called attention to it, it may have momentum. If it ends just as quickly it was probably a tactical day's trading. There are no announcements or fundamentals that I know of to explain it."
A Vodafone spokeswoman declined to comment.
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