Rakon responds to NZX after share price spikes 21 per cent

Rakon's share price gain has drawn the attention of the NZX's regulation arm, NZ Regco. Photo / File

Electronic components maker Rakon, in response to an NZX inquiry about a spike in its share price, said it continued to comply with the exchange's disclosure requirements.

The exchange noted Rakon's share price increased from 61c at the opening on Wednesday to 74c by mid-afternoon yesterday, being a gain of 13c or 21.3 per cent.

The stock continued to rally today, gaining 5c or seven percent to 77c.

"Rakon advises it has reviewed all information of which it is aware and advises it continues to comply with Listing Rule 3.1.1," the company said in a statement in response to the inquiry from the exchange's regulation arm - NZ Regco.

Market commentators had suggested Rakon's gain may have been a delayed reaction to an update issued by the company last month.

Rakon's revenue in the first half to September 30 improved to $59.5m from $56.9m in the previous corresponding period, while its net profit came to $4.6m from $1.3m.

"In the second half of the current year, with ongoing economic uncertainty from geopolitical tensions and Covid-19, 5G roll-out has slowed but recent activity indicates demand improving," the company said in last month's update.

Rakon designs and makes advanced frequency control and timing solutions.

Its three core markets are telecommunications, global positioning and space and defence.

Over the last 12 months, Rakon's share price has rallied by 45c or 166 per cent.