Gold fall hurts metal detector maker

The share price of Adelaide-based metal-detector maker Codan has been hit hard by a dramatic fall in gold prices, with investors wiping over 25 per cent of the stock's value last week.

The share price of Adelaide-based metal-detector maker Codan has been hit hard by a dramatic fall in gold prices, with investors wiping over 25 per cent of the stock's value last week.

Last week the ASX issued a price query to Codan after the company's stock fell to $2.72 on Thursday, down from a closing price of $3.67 five days earlier.

 

In response to the query Codan said it was not aware of any information concerning it that had not been announced to the market.

 

The retreat follows a fall in gold prices over the last few weeks, which are currently hovering around $US1400 an ounce, down from previous highs around $US1900.

 

Shares in the electronics manufacturer have since rebounded from the low of $2.56 last week, with the stock gaining more than ten per cent to level at $3.33 today.

 

Earlier this year Codan posted a record half-year profit on the back of strong demand for its metal detector products, and said it expected its second-half performance to be equally strong.