Shares of Freedom Holding (ASX:FRHC), a financial services firm based in Kazakhstan, have seen a significant lift, as high as 18.5%, on Friday after being subjected to a harsh critique by U.S.
short seller Hindenburg Research.
FRHC’s shares reached an impressive $82.76, with trade amounts close to two times the 10-day moving average partway through the day.
It was only on Tuesday that FRHC saw a substantial drop in their share value, as Hindenburg announced a short position in the company, claiming their research had exposed ‘hallmark signs of fake revenue’ and evidence of the firm dodging sanctions.
This report led FRHC shares to hit a six-month low on Wednesday.
However, FRHC rebuffed Hindenburg’s allegations, with CEO Timur Turlov firmly asserting in Thursday’s interview that his firm will continue to serve non-sanctioned Russian clients.
Turlov defended his company, stating that they had revealed details of their dealings with sanctioned clients in approximately seven inspections by Kazakhstan’s financial regulatory body within the past year.
By the end of trading on Friday, FRHC shares had climbed to $81.80, a 17.1% uptick.
Taking Friday’s surge into account, the stock has made an impressive 40% year to date.
Freedom Holding (ASX:FRHC) is a Kazakhstan-based financial services firm.