Trading Update – 7th Sept 2017


8 September 2017

Trading started relatively slowly – with only small (<50K) and medium (50-100K) trades until about 11:30am. These were predominantly buys and the nett trades increased to greater than 250K Buys more than Sells. A large sell of roughly 125K at 11:28am was taken up by a PI’s Buy of 100K some 12 minutes later. Two further Buys at 1:30ish, one 250K in size, pushed the nett trades over 500K…

And then the Ask dropped – why ? With an excess of Buys of more than 500K the MMs should be increasing the prices they pay for shares, in order to get more of them, not implicitly reducing the SP by lowering the Ask. The only explanation is that there must be a significant sell yet to be reported in between 1:34pm and 2:17pm. The size ? – well it should be greater than 500K to dominate the nett trade characteristics like it would appear to have done to the Ask.

After 2:17pm there is further semi-regular buying – two Buys of 100K by a PI and numerous small Buys (the Buys of 2x 13081 shares, at 3:41pm and 3:42pm are presumably equal stakes for siblings in JISA accounts). A Sell of 100K a few minutes before the close of trading, plus another after hours Sell of 50K reduced the nett trades position to 643K more Buys than Sells at the end of the day.

The SP finished at 9.875p, down 1.2% on the day, on a trade volume of 1.63M (1.1M Buys, 494K Sells). Further delayed trade reports expected.

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