Harvey Norman gets a 'please explain' from the ASX after shares plunge, then rise again

The Harvey Norman Supergirls Nissan at Mount Panorama in Bathurst. Robert Cianflone/Getty Images

Harvey Norman shares picked up in early trade today after being pinged by the ASX following a sharp fall on Monday.

A short time ago, the shares were up almost 3% to $4.49.

Harvey Norman has been sent a please explain by the ASX after its shares dropped 8.2% to $4.36 on Monday.

“We also note the significant increase in the volume of HVN’s securities traded in the past few days,” the ASX said.

The company replied that it isn’t aware of any information not announced to the market to explain the recent trading.

The ASX referred to reports that ASIC (Australian Securities and Investments Commission) is reviewing how Harvey Norman reports its exposure to franchisee losses and $1.15 billion in sometimes troubled franchisee loans.

However, the company replied that the reports were false, based on false statements and assumptions.

ASX-listed retailers went into a slide on Monday following the release of analysis by Credit Suisse on the impact of Amazon on Australia.

During the slide, Harvey Norman executive chairman Gerry Harvey bought 2 million shares for $8.7 million on Monday.

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