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18.5¢ strike energy limited

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kmuirhead

1,332 Posts.

342

08/02/24

06:39

Post #: 72295417
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Originally posted by gimo211: ↑

Hi kmuirhead,

"Why on earth would an index fund commission a third party to do the short selling so the third party could borrow shares and sell these shares to the index fund?"
I think the following logic underlies this:
An index fund must reflect the inclusion of STX in an index (e.g. ASX 200) in proportionately in a certain time.
Therefore, the fundmust acquire a correspondingly large quantity of STX shares. The index fundtherefore creates - from its point of view - an “artificial” and large demand.
If the index fund were to buy the required Strike shares on the market, this would lead to a significant increase in the share price.
However,an index fund wants to avoid this, as a fall in the share price after coveringits own requirements would have a direct negative impact on the fund value.
Shortselling therefore provides the necessary liquidity: the index fund can coverthe necessary demand immediately - without moving the share price.

That is theanswer to your question...

I expect that we will see an enormously high volume tomorrow in the closing auction andon Friday an ASIC report on an equally high short selling volume.

Let's see...

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Thank you very much gimo. It all makes sense now.
STX Price at posting: 43.0¢ Sentiment: None Disclosure: Held
2 Upvote

0 Great analysis

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(20min delay)
Last 18.5¢		Change 0.015(8.82%)		Mkt cap ! $515.7M

Open	High	Low	Value	Volume
17.0¢	18.5¢	17.0¢	$1.452M	8.186M

Buyers (Bids)

No.	Vol.	Price($)
49	1567486	18.0¢

Sellers (Offers)

Price($)	Vol.	No.
18.5¢	783563	32

View Market Depth

No.	Vol.	Price($)
48	1564620	0.180
21	1068167	0.175
43	2456338	0.170
34	2517320	0.165
43	1757874	0.160

Price($)	Vol.	No.
0.185	791702	32
0.190	1391496	11
0.195	1147194	6
0.200	855114	12
0.205	685147	7

Last trade - 14.40pm 06/09/2024 (20 minute delay)

STX (ASX) Chart