Insider trading entrenched according to execs
According to senior markets executives insider trading is rife on the Australian stock market and has become “part of the system”. Share prices of takeover targets regularly lift in the days before a deal is announced according to information presented at the Australian Securities and Investment Commission's Summer School yesterday. The managing director at Balanced Equity Management, Andrew Sisson, used analysis of market data over five years to show that in the 40 days prior to an announcement the share price of a target would increase by an average of 10 per cent, and 3 per cent in the last day. Other executives voiced their concerns that the level of insider trading being conducted is on the rise and have called for the supervisory powers of the ASX to be handed to ASIC.
Source: The Australian