two major parcels of fmg shares sold

Two major parcels of FMG shares sold
Finance: 22-April-10 by AAP

Fortescue Metals Group shares were sold off in two big separate parcels, making the stock the largest traded by volume so far today.

Analysts said the sell down could be due to one of the iron miner's larger shareholders exiting the stock, or was a reflection of the generally lower mining sector amid weaker commodity prices.

Fortescue shares were down 15 cents, or 2.85 per cent, at $5.11 at 1435 AEST after 71.46 million shares worth almost $360 million changed hands,making it the most traded by volume on the market according to IRESS data.

The stock hit a low of $5.06 in earlier trade.

Shortly after 1200 AEST, a parcel of 25.87 million shares worth $129.6 million was sold followed by the sale of a parcel of 30 million shares valued at $150 million.

IG Markets market strategist Ben Potter said almost two per cent of Fortescue's stock had been traded by about 1400 AEST.

"There's no indication of who it might be (selling)," Mr Potter said.

"Two of the biggest shareholders, Harbinger and Leucadia, both reduced their holdings in the firm back in March, so no one knows whether it's them selling more of their stake or it could be Fortescue itself on-selling those stakes to other investors."

Leucadia, which has provided Fortescue with a loan note, last month reduced its stake in Fortescue from 9.99 per cent to eight per cent.

US hedge fund Harbinger Capital Partners trimmed its interest back from 5.9 per cent to less than five per cent.

They are Fortescue's third and fourth largest shareholders respectively behind Fortescue chief executive Andrew Forrest, who holds a 31.4 per cent stake.

China's Hunan Valin Group has a17.3 per cent interest.

CMC Markets analyst David Taylor said Fortescue was under selling pressure, along with other miners, after base metals prices fell on the London Metal Exchange overnight.

"They've had a run up in the last couple of days, so there's a bit of profit-taking going on," Mr Taylor said.