The country’s biggest banking group, Nedcor (NED), had no official comment Monday morning on reports that it had suggested to analysts that they lower their earnings forecasts for the group for the current year.
A report in Business Reporton Monday quoted the head of surveillance at
the JSE Securities Exchange, Bill Urmson, as saying that the matter had been referred to the Insider Trading Directorate of the Financial Services Board (FSB), which the latter confirmed.
Astrid de Vos, a representative for the FSB, was quoted as saying the body “would be looking into the matter for any potential contravention of the Insider Trading Act”.
Earnings forecasts are considered to be price-sensitive, affecting share prices and volumes, and any public information in this regard is required to be published through the JSE’s news service Sens.
On Thursday when reports first appeared about the issue, Nedcor’s share price closed 3,9% lower at R93,22. On Friday, it ended 2,9% higher at R96 a share. At 1055 on Monday, the group’s shares were up 0,83% or 80 cents at R96,80. – I-Net Bridge