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21.5¢ strike energy limited

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Foibles

127 Posts.

43

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...

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

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(20min delay)
Last 21.5¢		Change -0.005(2.27%)		Mkt cap ! $629.3M

Open	High	Low	Value	Volume
21.5¢	22.0¢	21.3¢	$505.9K	2.321M

Buyers (Bids)

No.	Vol.	Price($)
56	1002969	21.5¢

Sellers (Offers)

Price($)	Vol.	No.
22.0¢	1617139	83

View Market Depth

No.	Vol.	Price($)
56	1006849	0.215
38	1096216	0.210
41	1720860	0.205
82	2068011	0.200
34	820955	0.195

Price($)	Vol.	No.
0.220	1607832	81
0.225	1034688	25
0.230	546799	21
0.235	1063694	17
0.240	1003853	16

Last trade - 14.46pm 24/05/2024 (20 minute delay)


Last 21.5¢			Change -0.005 ( 2.18 %)
Open	High		Low	Volume
21.5¢	22.0¢		21.5¢	649278
Last updated 14.55pm 24/05/2024 ?

STX (ASX) Chart