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23.0¢ strike energy limited

Thank you very much gimo. It all makes sense now.

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kmuirhead

1,365 Posts.

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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
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(20min delay)
Last 23.0¢		Change 0.000(0.00%)		Mkt cap ! $659.0M

Open	High	Low	Value	Volume
23.0¢	23.0¢	22.5¢	$546.9K	2.395M

Buyers (Bids)

No.	Vol.	Price($)
9	712707	22.5¢

Sellers (Offers)

Price($)	Vol.	No.
23.0¢	4111812	24

View Market Depth

No.	Vol.	Price($)
9	712707	0.225
18	828907	0.220
9	868657	0.215
22	1447617	0.210
29	1101334	0.205

Price($)	Vol.	No.
0.230	4111812	24
0.235	1345097	17
0.240	1333268	16
0.245	823751	19
0.250	2073567	26

Last trade - 16.10pm 07/10/2024 (20 minute delay)

STX (ASX) Chart