South African regulators are probing possible insider trading at Discovery after shares fell sharply the day before a downbeat trading update in February, the insurer said on Wednesday.
Discovery shares fell 5.5
percent on Feb. 16, a day before South Africa's biggest health insurer said it
expected a fall of as much as 55 percent in first-half profit.
Discovery immediately
reported the unexpected share price move to the Johannesburg Stock Exchange
(JSE) who in turn notified the Financial Services Board (FSB), chief financial
officer Richard Farber said.
"We are co-operating
fully with the FSB in their inquiry," he told Reuters.
The head of FSB's
directorate of market abuse, Solly Keetse, said the regulator would disclose
the details of the investigation when the report was complete.
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