A late-day announcement by CSL, one of Australia’s largest listed companies, regarding its chief executive’s resignation, triggered unexpected market volatility. The release, intended for post-market dissemination, was timed for a 5 pm conference call, but mistakenly coincided with an active trading period. CSL is a global biotechnology giant that researches, develops, manufactures, and markets a range of life-saving and life-extending biotherapies. The company has been a public entity for three decades.
The misstep stemmed from changes to the ASX’s after-market trading procedures implemented eight months prior. These changes extended the post-market trading session by ten minutes, allowing for closing auctions up to 4:21 pm. CSL’s 4:05 pm announcement fell within this window, giving traders time to react. Consequently, CSL’s share price plummeted 5 per cent in the auction, dragging the broader S&P/ASX 200 index into negative territory.
Interim chief executive Gordon Naylor acknowledged the unintended timing, while CFO Ken Lim declined to elaborate on the error. The incident exposed a lack of awareness among some of the ASX’s largest companies regarding the revised trading hours. Hugh Giddy from Investors Mutual criticised the timing, suggesting a trading halt would have been more appropriate.
Despite the immediate market reaction, shareholders broadly welcomed the leadership change, albeit unimpressed with the announcement’s execution. CSL shares further declined on Wednesday, but analysts like Giddy believe the long-term value of the company remains unchanged.
