Sharechat Logo

Tower share price fall queried by NZSE


Wednesday 11th September 2002

Text too small?
The New Zealand Stock Exchange has queried financial services group Tower after a 10 percent fall in its share price in the last 10 days.

Tower said it had no explanation in response to the NZSE, which asked if the company knew why its shares fell 40 cents per share to $3.50 yesterday.

Since closing yesterday at $3.59, Tower shares gained ground today to close up 17c at $3.76 by late afternoon.

"Tower is not in possession of information which if generally available to the public might reasonably be regarded as an explanation of the price variation," the company said in a statement.

However, it noted its average sharemarket turnover between September 2 and yesterday was low, and it was trying to reduce the number of small shareholders. More than one million shares have been sold under the small shareholder programme since August 28.

A third factor was market sentiment. "Tower's share price (as with many other insurance/financial services listed companies) has been affected by the general downturn of the insurance/financial services sector and adverse investment markets."

Tower shares have lost considerable ground since February when they were trading at $5.30.

That slide accelerated since the $A900 million ($NZ1.06 billion) acquisition last month of BT Financial Group by Australia's Westpac Banking, which Tower admitted would intensify competition and raise questions about its own future.

The purchase created Australia's fourth biggest retail fund manager with more than $A30 billion under management, compared with Tower's $NZ21.9 billion.

Tower, which listed in 1999, posted a net after-tax profit of $40.7 million for the half year to March 31.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Tower to return 'initial' $70M of capital from sale of life business
Tower shares fall to 2-month low as licensing requirements may weigh on capital returns
Tower's licensing talks with RBNZ may push up minimum solvency requirements
Tower names Hancock as new chief executive, replacing Flannagan
Tower posts first-half profit as asset sales reap gains of $51.4 mln
Fidelity Life acquires most of Tower's life insurance business
Flannagan to leave Tower after strategic review, asset sales
Tower FY profit jumps 67%, to return $120M to shareholders; shares jump
Tower sells medical insurance unit to nib for $102M
Stiassny joins Tower board as questions linger over strategy