20 Apr 2010

Allied Farmers issues explanation for share price drop

2:09 pm on 20 April 2010

Allied Farmers is blaming its poor half-year result and subsequent negative media reports about its assets for a 44% decline in its share price since the beginning of March.

Sharemarket operator NZX on Monday asked Allied Farmers to immediately explain the sharp fall in its share price on Friday, and the decline since 1 March, when the half-year results came out.

In response, Allied Farmers says more than half of the decline occured the day after its half year result, and the remaining losses over the following weeks following negative media reports about its assets.

Allied Farmers says it is unaware of any other reason for the decline.

Shares in Allied Farmers closed 1.8 % higher on Monday, and have climbed another 8.8% on Tuesday morning to 6.2 cents just before midday.