On Friday, just after 11 a.m., the stock market suddenly went fast for the Leuven technology company Crescent. In a short time, the share fell 99 percent to strand at the lowest possible price of 0.0001 euros. That writes business newspaper ‘De Tijd’ and is confirmed to press agency Belga. A statement is not immediately available, but the stock watchdog is analyzing the case.
Crescent itself does not know exactly what happened. Financial director Edwin Bex fell out of the blue: “We weren’t even informed until we got a call from a journalist. Maybe it was a technical error?”
The Financial Services and Markets Authority (FSMA) is in any case looking at it. “We have contacted the company and Euronext (the company above the Brussels stock exchange, ed.). We also check which parties are involved in the transactions,” responds Johan Corthouts, a spokesperson for the stock market watchdog.
A formal investigation is only launched by the FSMA if there is an abuse of power. Then there may also be sanctions. Although the stock market watchdog assumes for the time being that the flash crash was caused by a so-called ‘fat finger’. A wrong button is accidentally pressed or the wrong number is entered, with serious consequences for the stock price.
According to ‘De Tijd’, Crescent shares were traded nearly 9 million times on Friday, much more than the usual half million. After the flash crash, some traders have taken advantage of the extremely low price to buy.
In the afternoon, the price has largely recovered. At about 3.35 pm the loss is limited to about 16 percent and a price of 0.0143 euros.
Crescent develops technology for wireless applications, with a focus on the Internet of Things. This, for example, connects sensors to the web, making smart applications possible. The Leuven technology company works on smart buildings, cities, energy efficiency and factory automation.
The company had a turnover of around 9.6 million euros in the first half of this year, a sharp increase of 21 percent compared to the same period in 2021. The loss was just under 1.2 million euros. That equates to a 14 percent reduction in loss.
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