Australia's corporate watchdog said yesterday it is investigating possible insider trading linked to a major share issue last week by financial services giant AMP Ltd.

　　The investigation issintostrade on futures contracts based on the Sydney Futures Exchange's Share Price Index. The SPI measures the performance of the exchange's top 200 companies. AMP is a heavyweight in the index.

　　Australian Securities and Investments Commission Chairman David Knott said in a statement yesterday that the watchdog was lookingsintos"unusual trading in share price index futures ahead of AMP Ltd's announcements."

　　AMP last Thursday suspended trading in its shares and unveiled plans for a A.2 billion (US million) capital raising by selling 222 million shares to institutional investors. The shares were priced at a heavy discount of around 30 per-cent to the market value of its stock.

　　Before the announcement, the futures contracts for the SPI plunged 35 points on Wednesday afternoon amid heavy selling. Traders said it was the biggest fall and highest trading volumes in more than a decade and believe it could only have been due to insider trading.

　　When trading in AMP shares resumed on Monday following last week's announcement, the stock plunged 37 percent to A.53, dragging the whole Australian market down with it. The plunge had been expected by traders since Thursday when the announcement was made.