from 47c to 50cents

From ABC.

A financial analyst believes the uncertainty around the Tasmanian Government may have contributed to a drop in Gunns share price.

This morning shares in the Tasmanian timber company plunged to 47 cents, the lowest level in 10 years.

Financial analyst Matthew Torenius says there's concern about Gunns low profits and wood chip prices, but investors are also worried about whether a new Tasmanian Government will support Gunns Tamar Valley pulp mill.

"As an investor when you are looking at purchasing any stock you look for the risks involved in that and one of the uncertain aspects to investment in Gunns at the moment is how the Government is going to look in the coming weeks," he said.

Gunns shares rose to 50 cents at the close of trade.