A question about trading halts

[toc_bat]

Hi All

A Q from a newbie.

Do companies ever request tading halts if they are about to release bad news? Or is bad news released on the quiet?

Or is it generally requested prior to good or amazing news?

Why request them at all? Is to generate excitement and get noticed and thereby push their sp up even more?

Bye All

 

[Kauri]

Re: Trading Halts, a Question?

Classic bad news announcement release time is after close on Fridays.

 

[silence]

Re: Trading Halts, a Question?

They can be for good or bad news. Basically 'market sensitive' information.

It is a listing requirement, not really to generate excitement. I guess it's so everyone can absorb the information before trading resumes. That way the people with live news can't benefit from the information by trading it straight away.

 

[toc_bat]

Re: Trading Halts, a Question?

Thanks for replies, much appreciated.

Silence:

A listing requirement, but there is market sensitive news released all the time without a halt. So there must be some rule against which to measure whether a halt is required or not. I guess it must be pretty vague, like if the announcement contains information which has a "major" or "significant" bearing on the companies fortune, etc.

I wonder do the directors make the decision for a halt or does the ASX?

Bye and thanks

 

[TheRage]

Re: Trading Halts, a Question?

I wonder do the directors make the decision for a halt or does the ASX?

I think perhaps a mixture of both. A responsible company will put the company into a voluntary trading halt if they think the news may have some bearing on the Sp in a significant manner. As mentioned above if the news is material to the company's financial state it would be wise to place into a trading halt so that all the investors have time to analyse the impact of the news for themselves. This way investors who are not online every minute of the day are not penalised by missing the boat. With respect to the ASX and trading halts certainly they can enforce a halt if they thought it appropriate. Sometimes companies, deliberately or undeliberately, release news which they may or may not perceive to be either beneficial or detrimental to the share price. In these cases the ASX may see a sudden plunge or rise and put the stock into a trading halt and then put a querry straight to the company.

 

[bowser]

Re: Trading Halts, a Question?

Just have a look at GWR for a company that always seems to surge before an important announcement. If you view their news briefings via your broker the ASX has sent a few 'please explain'.