I was still trying to find out what is happening with this much volume; yesterday 3.5m, it'll be 3m today! And a lot of volume happened in last 6-7 days. Not much trades. Then what's happening? Who are the happy sellers and buyers?
I think I have found out what is happening. Just speculating of course.
I think someone (FUND Y) is transferring huge amount of shares (millions) to someone else (FUND X) by selling on the market.
I said above "Someone is buying constantly, bought millions of shares in last 5-6 days, while someone else is trying to meet this demand. Something is cooking out there. The sp may explode if 31.50c-32c levels are breached.".
After 2 minutes of this post, we received Acorn Capitals substantial holder anns., then Macquarie's substantial holder anns.
I was thinking and I said on a previous post before that someone (a big shareholder) was trying to get out of the market and I said "strange".
Now the trick is here that there is no competition between those FUND X (buying) and Y (selling). I told on my previous post "someone else is trying to meet this demand".
Why this is happening then?
Answer might be this;
Let's say Acorn Capital or Macquarie couldn't buy enough through the SPP. They both bought ~20m shares each of 76m issued. 36m shares went to others.
But let's say another fund or insto has bough 10m shares for selling back to Acorn or Macquarie. They don't not need to give a substantial shareholder anns. as they have less than 5%. But they will be able to sell (transfer) those shares silently back to Acorn or Macquarie, by a little profit. (Bough 30c, was selling at 31c, now selling at 32.5c).
I think this is only a share transfer.
We will see if it's true if we receive another substantial share holding increase on one of those instos.
I think it is Macquarie. Their registered holders; JP Morgan, National Nominees (NAB), Citibank, etc. could not get enough shares if you have a look at yesterdays anns.
Good luck.
NSE Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
