I agree that asking for a please-explain on such a small move...

I agree that asking for a please-explain on such a small move seems a little trivial. Maybe, like parking inspectors or traffic cops, the ASX staff have quotas to fill.

I do think the ASX handed Centro an opportunity today which management (once again) missed.

You will notice that both questions 1 and 3 give the company the opportunity to speak up about reasons for a rise. Question 1 is very specific, question 3 is more general and can present some PR opportunities for savvy companies.

I simply cannot believe that the executive team on the good ship Centro couldn't come up with anything for Q3. After all, they have basically saved the whole empire from collapse and charted a course for a strong recovery. At the end of last year, there were very very few people who didn't think Centro was dead.

I reckon it went something like this last night:

Liz: "Gee Glenn, the ASX want to know why the CER share price has gone up. Any ideas?"

Glenn: "Beats me Lizzy... what about you Tony?"

Tony: "Not a clue Glenn. Must be something to do with the moon phases."

Liz: "OK, I'll bang something together saying we have no idea and fax it to the ASX in the morning."

Maybe the way in which the question was asked threw them. If the ASX had written and said:

"Dear CER, We have noticed your share price has dropped precipitously in the last 2 years and is now worth a tiny fraction of the previous value. Recently however, you seem to have arrested the decline. We are very concerned about this situation. Could you please explain why your share price has stopped falling? Lots of love, ASX."

Wind the clock back to last night:

Liz: "Gee Glenn, the ASX want to know why the CER share price has stopped dropping?"

Glenn: "Oh, that's easy. It's lots of reasons, but mainly:

1. The stabilisation agreement and debt renegotiation
2. Board renewal
3. Board separation
4. The slowing of declines in commercial property values
5. A general recovery in the global economy
6. A renewed interest in A-REITs, which seem to be offering great value for money.
7. A renewed appetite for risk which makes shopping centres yielding 8% a far more attractive asset than government bonds yielding 3%.
8. Even after the recent rise, CER is still trading at around 50% of NTA, whilst most of the other A-REITs have risen significantly.
9. The fact that we have a good portfolio of well performing assets with high occupancy rates.

It could also be due to the fact that investors have seen other REITs divest their overseas assets into separate vehicles and are speculating we may do the same... Oh, and they could also be speculating that we might do a capital raising seeing as the market has recently demonstrated an appetite for these too. Any other ideas Tony?"

Tony: "Nope. I'm off to polish my Turnaround Management award. I still can't work out why I was given it though."