Investors cautioned against rumours

July 12, 2008 05:17:08 PM

• A⁺ 
• A^-
• |
• 
• |
• 
• |
• 

In light of the recent speculation on few listed companies, the South Pacific Stock Exchange is asking shareholders and potential investors to be more cautious about information available regarding listed companies.

Under the SPSE listing rules, listed companies have an obligation to disclose any material event taking place in the company.

Such events may require an immediate disclosure depending on how price sensitive the information is, SPSE chief executive officer, Jinita Prasad said.

Over the past few weeks there have been a lot of speculation in the media regarding board changes particularly at the Fijian Holdings Ltd (a listed company), its subsidiaries and its associate companies.

The speculations continue and no reasons have been given for the board changes.

However, Prasad said the public should be careful in using information from sources other than announcements made by the SPSE or by the listed company directly as such information could be potentially false and misleading.

“We therefore urge the public to first ascertain whether the information is reliable or not and feel free to clarify any information relating to listed companies with the Exchange or the listed company concerned before deciding to invest or divest in the company,” she said.

Meanwhile, for the first time ever, the SPSE today conducted a call market session in the western division.

The two-day event will feature free face-to-face consultation with the licensed broker representatives, educational guidelines on how to become a successful investor and an opportunity to actually observe the SPSE trading session live, Prasad said.

“This would be an opportune time for people in the Western Division to actually come down and meet the licensed broker representatives where they can enhance their knowledge of the share market and also learn about how to choose the right shares for investments,” she said.

Prasad added that since all the three broking firms together with SPSE were based in Suva, this would give the potential investors in the Western Division a chance to directly learn and understand what the risks and returns from share investments are.

“We also aim to highlight to the general public in the west how dividends from share investments are tax-free for Fiji residents as people fail to recognise this time and again,” she said.

The two-day event is being held at the Waterfront Hotel in Lautoka.

“People will be able to actually enter the visitor’s gallery at the Waterfront Hotel and observe how the orders are placed and trades get executed on the SPSE trading floor,” Prasad said.

“As a move to boost investor confidence, people will also be able to place buy or sell orders with the licensed broker representatives over the two-day consultation period and witness their orders being placed on the trading board and potentially being executed in the trading session on Friday.”