On 30 December 2009 BMP Ltd releases its half- yearly earnings figures.It announces its earnings are down 20 per cent compared to the market expectation of a decline in earnings of 20 per cent.What will be the likely impact of this announcement on BMP's share price?

Question

Quizplus · Accepted Answer

Since the earnings announcement matched market expectations (a 20 per cent decline), it is likely that this information was already priced into the share price, leading to no significant change in the share price as a result of the announcement.

On 30 December 2009 BMP Ltd Releases Its Half- Yearly