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Online Share Trading

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Price manipulation

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Super Contributor
I have noticed that every time Bil price is on the increase, a trade of 7 share/27 shares is completed at a lower price. I have made backup of these completed trade and i am going to write the JSE and all parties concerned to illustrate such practice. This need to STOP!!
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26 REPLIES 26
Super Contributor
jeez Preston - BIL can trade R500mil+ in a day. It's one of the most liquid shares on the board. Do you think 7-share trades are going to push it one way or another??
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Super Contributor
Tango , it is the frequency and the intention of such trade that need to be examined. Just have a look for yourself.
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Super Contributor
Check the trade at 14:33 and 14:38 .
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Super Contributor
Check the trade at 14:43 and 14:44 .
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Super Contributor
looks like a program trading. Happens all the time, and I don't think it's illegal. Seems a bit pointless tho to trade such small size.
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Super Contributor
But such trade is contain BIL price.. I see the dread 7 has surface. Next it will be 3 trade. It is nice to bring such trade to the JSE and let it be placed under a mircoscope.
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Super Contributor
Tango , have you noticed that everytime the price increase , albeit a small amount, then next few trade ie 27 shares , reduces the price again.?
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Super Contributor
Drop lower, i will add to my installment.
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Valued Contributor
could be futures basket trading where byt hey go logn teh futures and short the shares (or other way round). being auto trading they just hit the bid/offer. Anything fishy would alsmot certainly have been picked up by the JSE, but contact Peter Redman at the JSE and ask him.
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Not applicable
The same "7 share" trades happen with AGL as well. When AGL is rising you will see 7 shares being sold and when AGL is falling you will see 7 shares every so often being bought. At least this was my observation. Perhaps a Contrarian Indicator of which way the big boys are pushing the market? Or somebody thinks the number 7 is lucky? The other reason could be to stimulate the market when there is a stand-off between the sellers and the buyers where people with bids or offers may have to pay brokerage on just 7 shares so they are forced to buy or sell to fill orders?
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Super Contributor
BTTB , a similiar practice was observed with MTN last week. Thes guy using this technique have drop MTN price steadily and it seem today they are benefiting from the mtn share appreciation.
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Not applicable
Cant all this only happen when there is not enough actual direction,. hence it's a bit of a neither here nor there scenario !? If there were some larger orders to pass through in the week,.. they would drive old 7ball out the water no!?
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Not applicable
I am a bit offish to SSF's at the moment. I haven't the time to watch the market closely as the trading band is too wide for my cash. Absolutely great for day traders might I add .. But I am looking for a trending shares which hopefully is going just one way, preferably up. For instance people will say that ASA is cheap at about 10000. That may indeed be true, so I really should gather some at 10000, but the way the market is trading at the moment that 10000 could be 9000 in a months time or sooner with margin calls to my account. Hard to predict the market when the volatility supersedes value ... It would be interesting to know who this person is that trades with 7 shares and what their reasoning is behind this practice.
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Super Contributor
I think you are wasting your breath complaining to the JSE. The market is where the big boys control the market. You ten cents worth of complaints will come to nought. See how DB and other warrant/wave "market Makers" rig the market in their favour. I assume the same happens in the futures market. A big financial institution trader can take a long/short position in a future/warrant, then make the market move in the required direction, with this 7/3/27 share strategy. Last year there was supposed to be a meeting of all issuers of warrants to address their techniques, spreads, market making - it did not even happen!
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Valued Contributor
cept 7 shares ain't moving a half trillion rand copmpany ?
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Super Contributor
A butterfly flaps its wings. . .
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Super Contributor
That we don't mind. It's when the preying mantis shakes the butterfly and its wings flap ...
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Super Contributor
Yup. These are all arguments Preston must use when he contacts the JSE. He could even make illustrations.
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Not applicable
Fair question..
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