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22.5¢ strike energy limited

spot on. (Re auction close volumes)

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Foibles

143 Posts.

53

08/02/24

19:42

Post #: 72311620
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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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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

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(20min delay)
Last 22.5¢		Change -0.005(2.17%)		Mkt cap ! $657.9M

Open	High	Low	Value	Volume
23.0¢	23.0¢	22.3¢	$128.6K	570.2K

Buyers (Bids)

No.	Vol.	Price($)
26	871975	22.0¢

Sellers (Offers)

Price($)	Vol.	No.
22.5¢	423695	18

View Market Depth

No.	Vol.	Price($)
13	72865	0.255
4	15071	0.240
2	5787	0.235
2	43036	0.230
5	176459	0.225

Price($)	Vol.	No.
0.205	5	1
0.220	46909	8
0.225	53393	4
0.230	1398820	28
0.235	1658569	23

Last trade - 10.16am 26/06/2024 (20 minute delay)

STX (ASX) Chart