Allied Farmers to be considered for NZX50

NZX, the New Zealand stock exchange operator, has confirmed that Allied Farmers won’t be included in the NZX50 Index at this time, but will be considered for inclusion at the June review.

"This provides nearly 6 months of trading history since the 21 December 2009 equity-for-debt acquisition of Hanover and United Finance assets by ALF," the NZX Index Committee said in a statement.

Controversy erupted over NZX's process for notifying index composition changes when the Allied Farmers share price rose after release of a preliminary index memo to paid subscribers, only to see it fall again when the initial intention to include Allied was rescinded a few days later.

NZX has since been reviewing its index composition processes and will no longer issue preliminary memos, opting instead for a seven day notice period before changes are implemented.

The only change in composition of NZX Equity Indices is the removal of Sunseeker Energy (SSE) from the NZX SciTech Index and NZAX All Index. SSE is presently suspended from trading on the NZAX and hasn’t traded for 12 months.

No changes are to be made to the composition of the NZX 50 Index.

- BusinessDesk