01/09/2014 - 15:15

Mystery manipulators give CEO’s a headache

01/09/2014 - 15:15


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There’s a curious tactic at work on the ASX causing junior public company CEO’s to spit their coffee out all over West Perth around the same time each day.
It involves a mystery manipulator or manipulators selling just one share at the lower bid price during the end of day closing match period at 2.10pm every day.
This ensures that the all important closing price will be reported at the lower bid price instead of the higher selling price that the stock may have been trading at all day.
For example, if a stock is being offered for sale at 1c with bidders offering 0.9c and it has been selling at 1c all day, then selling just one share at 0.9c during the closing match period ensures that the closing price is reported at 0.9c even though it may have been trading at 1c all day.
One possible theory is that they are actually looking to buy big lines of stock and by forcing the stock to close at the lower bid price day after day they might just convince an uninformed larger holder to sell down at the lower bid price.
I think it might be time for the ASX to let the bloodhounds loose!
What do you think? Email Matt Birney at
Matt Birney is the Managing Director of Investor & Government Relations firm Birney Corporate.


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