VDM shares fall on market update

Shares in VDM Group have fallen as much as 26 per cent today, a turnaround from the share price surge it experienced on Friday afternoon that forced a temporary trade suspension.

The company's share price fell from Friday's close of 50 cents to an intraday low of 37c before closing at 45c today.

On Friday afternoon, shares in VDM surged around 85 per cent to a high of 57.5c in less than 15 minutes on no news, prompting the Australian Securities Exchange to temporarily suspend trading.

Company secretary Peter Simpson had told WA Business News the company did not have a reason for the share price surge.

In a statement today, VDM reiterated that it expects to report an operating loss for the 2009 financial year.

It added that it expects to write down its property portfolio by $15 million and confirmed that it had reached a $2 million deal over the release from a number of conditional agreements relating to the portfolio.

VDM said it would settle this amount through the issue of $1.7 million in scrip and the remainder in cash.