Primark’s parent group’s shares trading halted right after coronavirus related sales update

New York – Associated British Foods (ABF), Primark’s owner, has seen its shares suspended from trading after the fast-fashion giant warned store closures would hit sales.

According to the London Stock Exchange, the group’s shares were halted due to an erroneous trade. Notably, the stock had fallen 15 percent before trading was suspended.

In a first-half trading update ABF said 20 per cent of its retail space was now closed due to government measures in France, Spain and Austria to limit the spread of coronavirus.

Trading in Primark’s parent group suspended after inexplicable fall

Trading in Associated British Foods shares was suspended at 9 am after they inexplicably fell by 100 percent to 0.01 pence, reports Sky News. Analysts cited by the television channel said could have been because a trader hit the wrong button on their computer.

It’s worth recalling that earlier today, during their trading update, Primark announced the closure of stores in France, Spain, and Austria following their respective governments’ measures to deter the spread of coronavirus. Per ABF’s statement, those stores make up a fifth of their commercial network and “currently generate 30 percent of Primark's sales. From the date of this announcement, we had expected sales of 190 million pounds from these stores over the next four weeks.”

"The remainder of the estate, including the UK which represents 41 percent of sales, has seen like-for-like sales decline over the last two weeks and these have accelerated over the past few days as a result of reduced footfall” concluded the retailer.

Image source: Primark Official Website