Redox shares still falling amid unexplained selloff
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The news: Redox shares fell further on Friday after the chemicals supplier said it's not aware of any news unannounced to the market that would underpin the high trading volumes this week, in response to an ASX price query.
The numbers: Shares in Redox were down 6.9% at 10:51am AEST and are down 28.7% over the last five days. Trading volume on Friday has so far hit just under 875,000.
The stock was priced at $2.77 at close on Monday and closed at $2.20 on Thursday. Trading volume significantly increased over the week, hitting 1.3 million on Wednesday and 2.6 million on Thursday, compared with around 400,000 on Monday and Tuesday.
The context: Without any company-specific news, Redox told the ASX that the trading could be explained by a Morgan Stanley downgrade in its forecast for Redox’s full-year earnings for FY25 due to broader macro-economic factors.
Redox also said that low levels of liquidity in its shares could be magnifying price movement and that there is broader domestic macro uncertainty after lower than expected GDP figures were released on Wednesday.
The source: ASX
