The Reject Shop defended a sudden spike in share price after a query by the ASX left the business one day to respond or risk suspension from the market.
During the period between the 18th of December and the 6th of January, The Reject Shop’s share price jumped 41.6 per cent from a low of $2.86 to a high of $4.05 per share.
In response, the ASX questioned if there was some unannounced, confidential information that would have this effect on its share price, and if so, requested the business release the information, be put in a trading halt, or in a worst case scenario face suspension.
According to listing rule 3, a company listed on the ASX is required to disclose any information that a “reasonable person” would expect to impact share price as soon as is reasonably possible.
According to the department store, it could be the announcement of Andre Reich as its new chief executive officer on December 13th that caused the sudden rise in share price, as well as a buy up of The Reject Shop shares by Grahger Retail Securities. However, it isn’t certain.
“The company is not aware of the reason for the recent trading in its securities,” company secretary Michael Freier wrote to the ASX.