African Bank share trading may face probe

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Johannesburg - Johannesburg’s stock exchange may probe trading in African Bank Investments shares after the stock of South Africa’s largest provider of unsecured loans rose the most in 12 years last week.

African Bank climbed 11 percent to 12.20 rand on April 23, the biggest gain since March 2002.

Two days later, the Johannesburg-based company said it was in talks with Edcon to offer loans to the clothing retailer’s clients.

JSE, which operates the exchange, will look at African Bank’s trading record at a meeting next week, Peter Redman, a senior technical adviser at the bourse, said in an e-mailed response to questions today.

“They will decide whether or not to investigate further,” he said.

“If we find evidence of possible insider trading, we will pass it on to the Directorate of Market Abuse at the Financial Services Board.”

Chiquita Schram, an African Bank spokeswoman, said she was unable to immediately comment when called by Bloomberg News.

African Bank rose 0.3 percent to 12.49 rand as of 11:19 a.m. in Johannesburg trading, bringing this year’s gain to 3.7 percent.

The stock slumped 50 percent last year amid rising bad debt and losses at its furniture retailing business. - Bloomberg News

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