This will be interesting. Comsec did the same with DYE and it wasn't pretty. Who knows what will happen with SLX.
Margin lending can exaggerate the up/downs of a SP. The less lending on SLX, the more it should trade in a more sensible manner.
Anyone with Comsec margin lending who holds SLX will experience a hit to their LVRs.
Some might sell in anticipation of a lower SP they know might be coming. Others might get ready to buy more during any flash crashes. The market will determine the outcome in the short and long term.
I would love to know what thought process goes into a lending business who, after all this time, decides to get out of a particular stock. Do they look at end of financial year tax loss selling as a risk factor? Have Chinese walls broken down and they are just looking to force some of their customers to sell to other customers? Perhaps their trade volumes are down and it is an easy way to increase volumes before end of month. I don't know!
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)