Australia's largest stock trading and investment forum Australia's #1 stock forum

STX

Click for more information

1.25%

20.3¢ strike energy limited

STX Charts, page-1016

First 1016 Last

Share
Profile

Follow
Foibles

137 Posts.

51

08/02/24

19:42

Post #: 72311620
Share
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...

Expand

spot on. (Re auction close volumes)
Last edited by Foibles: 08/02/24

STX Price at posting: 42.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

MiningNews Select Conference: Look further afield for funding projects, advises Rick Rule

SRX

Worker dies at Sierra Rutile mine

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

ASX Market Update:

ASX Market Close: Index gains 1% after interest rates pause | June 18, 2024

There are more pages in this discussion • 515 more messages in this thread...

First 1016 Last

Add STX (ASX) to my watchlist

(20min delay)
Last 20.3¢		Change 0.003(1.25%)		Mkt cap ! $572.1M

Open	High	Low	Value	Volume
20.5¢	20.5¢	19.8¢	$87.25K	431.1K

Buyers (Bids)

No.	Vol.	Price($)
23	1190334	20.0¢

Sellers (Offers)

Price($)	Vol.	No.
20.5¢	3030158	32

View Market Depth

No.	Vol.	Price($)
19	611826	0.200
61	3306136	0.195
54	2667636	0.190
37	1501737	0.185
33	912758	0.180

Price($)	Vol.	No.
0.205	3025872	32
0.210	1313642	15
0.215	302999	9
0.220	875481	26
0.225	1134766	15

Last trade - 10.40am 19/06/2024 (20 minute delay)

STX (ASX) Chart

SPONSORED BY