Israel Corp shares were going along nicely until a typing error sent them sliding. Photo: Bloomberg
Investors in an Israeli company had an unpleasant shock on Sunday – their shares lost 99 per cent of their value because of a trader's typing error.
Israel Corporation saw its shares fall from 1690 shekels ($A518) to 2.1 shekels as a result of the mistake, before recovering to 1550 shekels.
The trade was cancelled and the trader was fined 10,000 shekels, a spokesman for the Tel Aviv stock exchange said.
"It's not the first time that this has happened," the spokesperson said.
Israel Corp, the country's largest holding company which specialises in fertilisers and specialty chemicals makes up more than 2 per cent of Israel's benchmark TA-25 index. The index experienced a mini-crash, falling 2.4 per cent in the early afternoon.
Long line of errors
The mistake was the latest in a long line of "fat finger" errors made by traders entering deals on their computers.
In October last year Nasdaq, America's stock exchange for hi-tech companies, cancelled some trades in shares of Kraft Foods that had pushed the stock up about 29 per cent in just one minute. Those trades were also cancelled.
Two months previously Knight Capital, the US market maker, blamed a computer trading error that cost it $US440m ($A487m) on disused software that was accidentally reactivated when a new program was installed.
The firm was forced to accept a $US400m investment from a group of financial companies to keep it afloat.
Facebook's flotation on Nasdaq was also affected by technical problems.
Daily Telegraph, London