Tranz Rail blames rumour for surge in share price

<p>Tranz Rail has told a New Zealand Stock Exchange (NZSE) inquiry that a rumour fuelled by a newspaper article is to blame for an 11% increase in the company’s share price.</p> <p>The share value rose last week after media speculation that the New Zealand Government is about to buy back the company’s rail track.</p> <p>On Friday afternoon (January 17), the stock exchange’s market surveillance panel noted that 1,783,524 shares were traded on Friday, reaching a price of NZ$1.21.</p> <p>At midday today (Monday, January 20), Tranz Rail shares were trading up at $1.23.</p> <p>In today’s response to the panel, Tranz Rail said it does not have information that can explain the rise and it is not about to make any announcements to the stock exchange.</p> <p>However, the company did state that it has "ongoing and frequent contact" with the government on a "wide range of issues".</p> <p>"Over the last 12 months, the company has had a number of discussions with the government in relation to the role of rail in its land transport policy," Tranz Rail stated. </p> <p>The company said it believed the newspaper article had "created a rumour in the marketplace".</p> <p>New Zealand transport minister Paul Swain was discussing complaints about Wellington rail commuter services and freight services.</p> <p>He was quoted as saying freight services could be taken over by a range of companies or retained by Tranz Rail "but possibly the government owning the track". </p> <br />