Flash crash in Israel stock mkt causes 100% drop

G

Grandluxe

Flash crash: Israel stocks hit by typo
By Matt Clinch | CNBC – 5 hours ago


A typing error by a clerk at the Tel Aviv Stock Exchange (TASE) caused one of Israel's largest investment firms to lose nearly 100 percent of its market value on Sunday, with the Tel Aviv 25 (Tel Aviv Stock Exchange: .TA25-IL) falling 2.5 percent for a five minute period.

The share price of Israel Corporation (Tel Aviv Stock Exchange: ILCO-IL) - the country's largest holding company which specializes in fertilizers and specialty chemicals - fell sharply from 167,200 Israeli shekels ($46,385) to 210 shekels ($58) after a TASE member entered a wrong number.

The trader was trying to sell shares in another company, according to TASE and accidentally selected Israel Corp.

The mistake caused a mini-crash at 12.20 p.m. local time on Sunday and shares traded lower for five minutes before the index was halted.

http://finance.yahoo.com/news/flash-crash-israel-stocks-hit-091407006.html
 
I don't see the name of the investment company, which was down nearly 100% of its NAV before the trades were broken, in the your post or in the article. I don't believe the article. I believe the decline happened but they would have to be insanely leveraged to lose it all on a 2.5% decline in the index and I do not believe one of Israel's largest was/is that leveraged.
 
You must log in or register to reply here.
Back
Top