Adcorp Holdings’ share price tumbles
Johannesburg - JSE-listed workforce management group Adcorp Holdings’ share price tumbled more than 19 percent on the early trade on Sunday to R10.76 a share.
This is down by R2.54 as comparing to Friday’s R13.30 closing price on Friday.
Commenting on this behaviour earlier, Ashburton Investments’ fund manager Wayne McCurrie says it is difficult to comment on the short term movement of any company’s share price but says it is not unusual to see smaller companies’ share prices showing a significant drop or gain on a particular day.
“When there no news that might cause the behaviour of the share price to go up or down by a big percentage, that company might have few volumes being traded on the stock exchange at that point,” says McCurrie.
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McCurrie added that smaller companies tend to have these big movements in the share price but they normally settle down as the day progresses.
By Sunday afternoon the company had reversed some of the losses as it was down by 17.44 percent.
Jordan Weir, an equities trader at BayHill Capital, also says it is difficult to explain the cause if the company don’t release any news.
“On the specific day, it was most likely attributed to both a hasty seller trying to close a position as well as relatively smaller volume being traded on the security which opens up the potential for larger bid/ask spreads to start forming,” he says.
BUSINESS REPORT ONLINE