CCH`s share bounced back today to recover some of the losses made over the past week, although the stock, hammered by the rumour mill, is still 26% off the 480c of last Thursday.
Analysts say the share was knocked heavily by rumours that CEO Aletha Ling had dumped shares and that MGX, which is in talks with CCH, had called off a potential deal.
There was also talk that shareholder Brait is seeking management control.
However, all three rumours have been strongly denied by Ling. MGX also says the rumour involving the talks are groundless.
The CCH share closed at 285c yesterday, losing 85c or almost 23% from Tuesday. Yesterday`s close was down 195c or 40.6% on last Thursday`s closing price of 480c.
The case mirrors that of Softline, whose share took a pounding last week on rumours that CEO Ivan Epstein and COO Steven Cohen had resigned.
The Softline share also began a recovery after the company issued a statement saying the rumours were baseless.
An analyst said the JSE should investigate the matter, which was a case of malicious rumours, but the JSE said it saw no reason for a probe.
Another market watcher says it is quite possible that gossip mongers are manipulating the prices "for their own purposes" and has repeated the suggestion that the JSE get involved in such cases.
The CCH share was trading at 355c by late afternoon, up 70c or 24.6% on yesterday`s close, while MGX was up 65c or 5.26% at 1 300c.
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