Top40 Closing Prices 14th April

[Jackfrost]

Hi All, Anyone know why the closing prices yesterday of SATRIX 40 and Topi 40 Index diverge?Index was 26488 and Satrix was R26.45? Although not big in percentage terms it shows up as the SATRIX DOWN compared to previous day and the TOPI Index is UP.Unless there is some error in my understanding of these numbers it must drive the TA practitioners barmy using OST information

[SimonPB]

it is actually JSE information, not OST .. an the issue was a dirty closing price for stx40 on 13 april when the closing auction price was way to high as the result of a 5pm trade above FV ..

[Jackfrost]

Thanks Simon;perhaps its time for the JSE to do a major upgrade of their data systems.Pretty much all the major markets indexes can be looked up free of charge in real time as opposed to the 15 Minute delay from the JSE.In doing research into online brokers in Europe,US ,ME and SE Asia the last week not one quoted the JSE Indices although on most of the sites I visited the Australian index was available.Perhaps the JSE is just too small and insignificant to matter in global terms;nevertheless if they intend to improve their worldwide visibility and marketability of shares they quote on the exchange their data reporting needs a kickstart.I think they owe it to the companies that support them considering that for several minerals & metals[Pt] South Africa has the majority of the worlds known reserves mined by very significant enterprises

[razputin]

If you follow the price of the Stx40 on a regular basis as I do, you will see that the price often diverges from the main top40 index throughout the day, sometimes above and sometimes below. The largest divergence seems to always happen during the closing auction when mainstream traders can't participate, and it is usually by a single trade placed exactly at 17H00. I have guessed that it is a market maker that is trying to set the price to advantage himself on overnight open positions that are charged interest. In other words, set the price higher if the book is net long, or set the price lower if the book is net short. Just a theory.

[SimonPB]

razputin .. trust me I love a conspiracy theory more then most .. but yours doesn't wash .. firstly the 5pm trade is actually the result of a ten minute auction proccess .. secondly it makes zero difference to the market maker as to where the product trades at the close ..

[Mr_Money]

The JSE is the 18th largest bourse in the world , if anyone really wanted to know