The Finnish Financial Supervisory Authority (Fiva) has launched a preliminary investigation into an unusual drop in networks giant Nokia’s share price last autumn, the leading daily Helsingin Sanomat reports on Saturday.
On October 24, Nokia published third-quarter results that rattled investors. The firm significantly downgraded its guidance targets, said it was having problems with its development of high-speed 5G technology and that it would stop paying dividends in order to invest more heavily in 5G.
That day, the company’s share price plunged by 23 percent on the Helsinki Stock Exchange, and by 27.9 percent on the New York Stock Exchange. NOK is also included in the Euro Stoxx 50 stock market index.
Inside information must be disclosed ASAP
By law Fiva is obliged to look into any market statements that trigger sharp changes in a share’s value.
The watchdog wants to know why the company did not provide any information about its markedly worsened outlook until October.
Under the EU’s Market Abuse Regulation, inside information must be published as soon as possible unless there a legitimate reason for disclosure to be delayed. Statements of a company’s future prospects or changes in them are considered inside information since they may have a significant impact on stock prices.
The company’s CEO, Rajeev Suri, has denied any delay in releasing the information.