ASIC, ASX in contact on Kaili Resources, after wild 'Penny Stock Monday'
Kaili Resources, Ausmon Resources and Vital Metals are all suspended after crazy price action shocked the market.
Corporate cop ASIC is in contact with stock exchange operator the ASX after rare earths hopeful Kaili Resources (ASX: KLR) soared 8,700% on Monday, before losing half its value and entering a suspension at $1.08 per share.
In a statement on 'Penny Stock Monday', ASIC confirmed it's aware of the wild price action that hit the market, as the regulator responsible for market integrity and enforcement under the Corporations Act or other financial services laws.
ASIC declined to comment on further questions around the price action that has set the market alight with speculation.
The ASX declined to comment beyond what it has already publicly detailed in that it's querying Monday's trade in Kaili and Ausmon Resouces (ASX: AOA).
The latter rocketed 150% before being put into a halt and shares the same corporate address as Kaili Resources in Sydney's central business district.
It's believed Kaili's 8,700% rise triggered the ASX's automated volatility controls known as Extreme Trade Range (ETR) mechanisms, which the trading venue now applies to all stocks.
The ETR mechanism resulted in Kaili stock coming in and out of suspension several times over the trading day, before a final crash saw Kaili cop a final ticket for hooning.
Another penny mining stock Vital Metals (ASX: VML) was also placed into a halt on Monday, although it's unclear if this is a coincidence or related to the abnormal price action in its peers.
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Tom covered markets as a Markets Reporter & Commentator at the Australian Financial Review for nearly five years. Prior to that he was the Managing Editor of The Motley Fool Australia leading a team of around 20 investment writers during a five-year period of massive online growth. Before that Tom worked in equities management at the Bank of New York Mellon in London and as a holder of professional investment qualification the Investment Management Certificate is eligible for membership of the CFA Society of the UK.
........
Livewire gives readers access to information and educational content provided by financial services professionals and companies (”Livewire Contributors”). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.
.jpg)
Never miss an update
Get the latest insights from me in your inbox when they’re published.
4 topics
2 stocks mentioned
.jpg)
Tom covered markets as a Markets Reporter & Commentator at the Australian Financial Review for nearly five years. Prior to that he was the Managing Editor of The Motley Fool Australia leading a team of around 20 investment writers during a...
Tom covered markets as a Markets Reporter & Commentator at the Australian Financial Review for nearly five years. Prior to that he was the Managing Editor of The Motley Fool Australia leading a team of around 20 investment writers during a...
Comments
Comments
Sign In or Join Free to comment