Regulator Scrutinizes Wild Stock Swings in South Africa
- Speculation about next Viceroy target spurring panic: Shapiro
- Some property stocks plunged by records before paring losses
Residential and commercial buildings sit in Johannesburg.
Photographer: Nadine Hutton/Bloomberg
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South African regulators are scrutinizing trades prompted by speculation that Viceroy Research will release a negative report about one of the country’s stocks, which caused some shares to crash more than 20 percent.
The Financial Services Board is working with the Johannesburg Stock Exchange to review trading activity and determine whether a formal probe is warranted, Tembisa Marele, a spokeswoman for the Pretoria-based FSB said in an emailed response to questions. The FSB’s mandate includes probing insider trading, price manipulation and false reporting.