On Friday, JSE-listed accounting software company Softline Holdings was the victim of a rumour in the marketplace that founders, CEO Ivan Epstein and COO Steven Cohen, had resigned.
The rumour of indeterminable origin swept through the market on Friday and resulted in the share losing 70c (20%) on the 345c opening.
In a brief Stock Exchange News Service (SENS) release, Softline confirmed there was no substance to the "unfounded and malicious rumour that either Epstein or Cohen have resigned".
An analyst says the rumour is "malicious" and the JSE should investigate the origin. He adds that this kind of gossip mongering is bad for the sector and gives the market as a whole a bad name.
The JSE surveillance department says it sees no reason for an investigation.
"We have looked into the matter and the selling has not come from one institution. Added to that, the share has recovered since opening this morning," says Peter Redman, senior technical advisor, JSE surveillance.
"If the share price had been depressed and there was something going on at the company, we would have cause to investigate an insider trading case, but there appears to be nothing out of the ordinary going on."
The Softline share price has been under pressure lately, especially after the company announced a parting of ways with US subsidiary SVI last week.
Softline was leading in volume traded by 3pm, gaining 37c (13.5%) to trade at 3.12c. Some 11.7 million shares worth R36 million had already changed hands an hour before the markets closed.
Related stories:
Markets nervous after Softline, SVI split
Share