MILAN (Reuters) – Dubai-based payments processor Network International NETW.L sought to reassure investors over its business trends on Monday after its share price halved in less than a week.
Traders said the price plunge was linked to a build-up in bearish bets, but the company pointed out that its business prospects remain sound and its total processed volumes (TPV) have continued to rise.
“The Company is not aware of any reason to justify the (share price) move and is pleased to report that the trend of improving volumes in directly acquired domestic TPV – reported for July with our interim results – has continued in August and early September,” it said in a statement.
In a separate statement, the company said that Chief Executive Simon Haslam, along with its chairman and another director, had bought shares in the company to demonstrate confidence in its long-term growth prospects.
That helped the stock to pare some losses to trade down 6.7% by 1444 GMT after falling as much as 33% in earlier trade to take losses since last Tuesday to 55% at one point.
Jefferies analysts said that no new fundamental factors had emerged regarding the business.
The latest data from the Financial Conduct Authority shows that CapeView Capital, Kuvari Partners and Gladstone Capital Management made slight increases to their short positions on the stock this month to 0.72%, 1.54% and 0.81% of the company’s shares.
None of the three investors responded immediately to a request for comment.
Reporting by Danilo Masoni; Editing by David Goodman