Three words that best described yesterday's stock market were "What The Hell!".
Yes, the market closed up some 8 pts and all you read is comments like the following:
- On Bursa Malaysia, Nestlé was the top gainer, jumping RM2.20 to RM57.40. Carlsberg was up RM1.68 to RM12.98, Pharmaniaga added RM1.51 to RM6.50; Dutch Lady rose 90 sen to RM34.54; TDM climbed 54 sen to RM4.55; Takaful advanced 27 sen to RM5.51; Tradewinds rose 33 sen to RM9.30; IJM Land and UMW added 31 sen each to RM2.38 and RM8.70 respectively; while MMHE was up 30 sen to RM5.40.
The actives included Luster, DSC Solutions, Hap Seng, Flonic, Maybank, Telekom, DiGi and Arientec. The decliners on Friday included BAT, F&N, United PLANTATION []s, GAB, Aeon, Batu Kawan, Petronas Dagangan, Petronas Gas and Genting Plantations.
What was most interesting was how the stocks traded!
Take Telekom or TM. The stock had appeared to have a normal trading day. It opened trading at 5.52 and close the day down 9 sen at 5.42. Nothing out of ordinary until one inspects how the stock closed the day down 9 sen.
As you can see the sudden plunge of the stock right at the closing bell. Look below at how the stock was trading at 16:44:12. Stock was trading at 5.50 just before the last trade closing. Then somehow the market decided that the stock should trade some 16 bids lower at 5.42! 16 bids lower!
This is the 5 min chart of TM.
See how the massive gap down in the very last trade?
( Ah.. the Flash Crash topic! And remember 21 Oct 2011? And FBM KLCI Decided To Have Its Own FLASH CRASH! )
Perhaps this is not the best example!!! Yes, embrace for some even more drastic intraday trades.
Let's look at FN, one of the decliners yesterday.
FN PLUNGED at the last closing trade!!!!
FN was trading at 18.46 at 16:40:12. Then at the closing day trade, the markets decided that FN should trade at 16.80. And that's just a swing of a mere 1.66!!! That's just a gap down of 17 bids!
Yes, that's how a 17 bid flash crash looks like!
Look at the spike in volume too!
Yeah Flash Crash postings. Do refer the posting made in 2010: They Just Don't Trust Wall Street. Well at least the stocks mentioned somehow recovered. In FN Holdings case, the stock literally died at closing bell!
Yeah... what the hell!!!!!
Want another one? Let's look at another one, BAT I will just post the 5 mins intraday chart and just like FN, BAT plunged at the close!
And DIGI plunged too at the closing bell.
And then Media? It decided to do something different. It had an incredible upwards surge during the morning!!!
At 10:02:20 the stock was trading at 2.36. Five seconds later at 10:02:24, the stock went down to 2.27. And within the same second, the stock tracker showed the stock had jumped back up in a flash to 2.40. WOAHHHH!!!!
And IT wasn't done! Look below.
The very last second of 10:02 or at 10:02:59, the stock has surged to 2.78!!
So at 10:02, in that 60 seconds, the stock went from 2.36 to 2.27 to 2.78!!!!
Oh yeah... What the hell!
And the party ended just as fast. At 10:03:42, the stock went from 2.78 to 2.41!!!!
Holy cow!
Here's KLK. It did its crashing right early in the morning trade!
IOI went straight up just before closing.
Nestle? Nestle just went up straight up like crazy in the morning trade.
I really can go on and on. What one will see is a sudden gap up or down (with heavy volume too) in the stock trading.
Let me name some other stocks. Maxis, Petronas Chemicals, Petronas Dagangan, Maybank, RHB Cap, Sime, United Plantations, Genting Plantations, Parkson, Shell, Asia File, Sunway, MPHB, Orient.
And this 'long' list is derived from a quick glance thru. I am sure the list is much longer!
So how?
ps: Any news coverage on this incredible gap-ing day? Did someone did some test run on their new fancy stock trading algos?
ps/ps: Here's a recent article on the Edge: http://www.theedgemalaysia.com/in-the-financial-daily/209862-moving-towards-frictionless-markets.html
ps/ps/ps: Feel free to add to the stock list.
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Thanks to solomon :
Carlsberg: How's this for a melt UP??!!
GAB! Now this a good one thanks to kjgooi.
Well if Carlsberg went into a melt UP during closing, why on earth did GAB do a melt DOWN????!!!
Posts
6 comments:
GAB too.
My dad was laughing at his Calsberg.....when I checked over 1.5 million shares traded last minute with rm1.5 up....
It looks like 7-11 big gulp...
Thanks! Added GAB and Carlsberg into the main posting.
Solomon: WOW! Now thats a melt UP!
You noticed it too.
I cannnot explain the price action of these stocks.
What gives?
Ronnie: Do follow the Flash Crash postings and do give the edge article a read http://www.theedgemalaysia.com/in-the-financial-daily/209862-moving-towards-frictionless-markets.html...
Moo,
Some time back, u wrote another article about these gap-up/down phenomenon of the Bursa KL.
Do u still recall?
I had then a conjecture that it was a timed scheme for fund transfer - ie instead of cash, shares r traded on timed sequence, from one party to another. The recipients can then sell at a profit (fat/slim). But the money had gone through.
What u see now, could be the action of multiple parties involving the same MO. Those that went up at the close was bought earlier to avoid notice. While those went down, was the initial phrase of another 'transfer'.
Shares involved were usual heavy weight & in quick transaction of high volumes.
Clean & legal. Except some quick-eyed side-kickers, who had observed this tactic, would profit handsomely via closed monitoring of the transactions trends of the GLC funds.
After yr earlier article, I did just that.
Happy to say that I caught Nestle, Digi & Carlsberg in the acts. A BIG fat father's day present!
TQ - for the suckers who thought of such scheme.
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