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24 Jul 2008 18:22
No insider trading took place at Investec, Solidarity said on Thursday.
Spokesperson Jaco Kleynhans said the trade union will therefore not go ahead with its request to the Financial Services Board to investigate insider trading by Investec directors.
“We are satisfied with Investec’s explanations. It is clear that insider trading in fact did not take place,” he said.
Earlier on Thursday, Solidarity asked the registrar of securities services to hold back on a complaint while the two parties met during the day.
On Wednesday, the union lodged a complaint against Investec, asking for an investigation into the possibility that Investec may have deliberately tried to influence its share price with its announcement that the new inflation basket would lead to lower inflation.
On Thursday afternoon, the union said it still wanted clarity on the credibility of the new inflation basket as an instrument to measure true inflation.
The basis year for the new inflation was 2005, it noted.
Dirk Hermann, deputy secretary general of the union, said: “The surveys on spending patterns, on which the weights and items of the new basket are based, will already be four years old by the time it is implemented in 2009.”
He added: “We tasked our research team to investigate the credibility of the new inflation basket.
We plan to release the findings of this investigation during a conference on inflation later this year.
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