The company published a severe profit warning for the fourth quarter and fell on brisk volume on the TASE.
Sources inform ''Globes'' that the The Israel Securities Authority is investigating suspicions of irregular trading in MA Industries (Makhteshim Agan) (TASE: MAIN) in yesterday’s session on the Tel Aviv Stock Exchange (TASE). Yesterday the company published a severe profit warning for the fourth quarter, and the Securities Authority will probably investigate whether there was any insider trading, given the irregular activity in the stock prior to the release of the profit warning.
Makhteshim opened yesterday’s session with a gain of 2%, following positive recommendations from analysts at Bank Hapoalim (LSE: BKHD; TASE: POLI), and UBS. The stock began to retreat as afternoon approached with trading suspended at 16:30 as the company released its profit warning. After trading resumed, it fell 4% but then rallied 1% in heavy trading of NIS 170 million, three times its seasonal average, an occurrence that is commonplace in stocks affected by significant developments.
A spokesperson for Makhteshim said in response the company had not received any notice from the Securities Authority of an investigation into the stock performance in yesterday’s session. Makhteshim stressed that it notified the Securities Authority in the morning of the profit warning that it intended to release, and that it did not have any contact with the Securities Authority subsequent to this.
Published by Globes [online], Israel business news - www.globes.co.il - on January 17, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007