Tuesday 24th October 2017
Tuesday trading started out at about the same pace as the end of the previous day. By 2pm only 130K shares had been traded.
Evidently the MMs thought ‘enough of this, let’s shake things up’. Naturally they dare not raise the Bid unless there are hungry buyers beating their door down, so what else might they do ? – they can only do the opposite – have a cut price sale and give shares away. We may of course see delayed trades that explain why the Ask fell twice after 2:30pm – these may be genuine PI sells, or simply MM rebalancing trades, but if we don’t then this is simply a classic attempt to encourage trading. It’s just the same in the high street.
Either way – what happened as a result was predictable – there were very happy buyers ready to snap up these discount shares (each one of course now coming with a free Afritin share thrown in) with over 500,000 shares being bought between about half past three and quarter past four. A couple of curiously priced ‘Sells’ at 4:14 and 4:15pm knocked the nett share trades back down to around plus 300K.
So a good day to get a bargain. One might expect the SP to increase when you have more Buys than Sells – evidently not with Market Makers who feel the need to to give away shares at cut prices. With a strong run of significant news in the offing I suspect they may struggle to persuade anyone to sell them the shares they will need to deliver within weeks.