Yesterday’s market rebound took some of the heat off a host of companies in the financial and property sectors, not the least the developer Mirvac Group.
The shares closed at 63 cents, up 1 cent, after being as high as 69 cents on the day after Citigroup-inspired global rise on markets.
For Mirvac the surge was timely:
It had been queried on Tuesday by the ASX after the shares hit 59.5 cents, down from 80 cents a week earlier. It ended at 62 cents on Tuesday.
The 59.5 cent quote was an all time low and the stock had hit several of those in the tumble of more than 20%.
Mirvac replied to the query yesterday, saying it cannot explain the sharp drop.
Mirvac said it "is not aware of any information" that might explain the drop in its share price from 80 cents last Wednesday to 59.5 cents on Tuesday.
Mirvac said it was in "continued compliance" with the ASX’s listing rules. But it is now significantly lower than it was on Wednesday March 4, and we are none the wiser.
Meanwhile, Goldman Sachs JBWere has ceased coverage on a number of real estate stocks "in order to reallocate our resources more productively within the REIT sector."
The companies include: CER: Centro Retail Group; CNP: Centro Property Group; RNY: Reckson New York Property Trust and TSO: Tishman Speyer Office Fund.
The low share price and lack of any action in these REITs probably had as much to do with the decision as anything else.
Meanwhile, trading in Nexus Energy shares has been suspended for a week now after the original two day suspension ended yesterday.
Nexus told the ASX yesterday that it is continuing talks about assets sales and fund raising options.
The oil and gas explorer, which went into a trading halt on Monday, has requested the suspension until March 18.
"The company is seeking suspension while it progresses negotiations in relation to asset sales, debt raising alternatives and significant contractual obligations," it said in a statement.
Nexus said it will be in a position to make a further announcement by March 18.
The stock last traded at 38 cents.
Nexus has been trying to sell its 85% stake in the Crux oil and gas field offshore Western Australia. It has been seeking a partner for the development of the field, but a deal with Japan’s Mitsui has not happened because of the global credit crunch.
And more problems for contract printer, PMP.
It’s losing money, facing problems in finding a new CEO and losing customers. Now the former CEO is suing it.
The company’s shares rose one cent in yesterday’s stronger news to 27 cents.
PMP said yesterday morning that it will defend a claim by former CEO, Brian Evans, who left the company in January.
The printing group was Tuesday served with a statement of claim by Mr Evans seeking a payment of $1.56 million.
The claims also seeks includes interest and costs and is related to the cessation of his employment, PMP said in a statement to the ASX.
"No payment has been made to Mr Evans in relation to the cessation of his employment and this claim will be defended by the company," it added.
PMP has retained Blake Dawson to represent it in the matter.
PMP said in January that Mr Evans would leave the company "by mutual agreement".
It is yet to announce a successor.
Chief financial officer Richard Allely is currently acting chief executive.
PMP had previously said it expects to name its new chief by April.
There have been a number of media reports about the instability in the upper levels of management, problems with the company’s printing and distribution businesses and concerns voiced by some, unnamed customers.
