21st Nov 2017 – as it happened


22 November 2017

After the 7am announcement that Bushveld Energy and UET were going to be deploying a 125kW/450KWh Vanadium Flow Battery to Eskom’s Rosherville energy storage test site the Ask opened up 0.5p on the previous days close.

Initial buying was strong with prices of 8.9p being paid by those first through the doors but the volumes were not large and MMs were forced to take only 8.6p by half past eight. At this point a large buyer turned up and 3 trades of 100K, at increasing prices of 8.64p, 8.75p and then 8.8p helped pushed the Bid all the way back up to 8.75p.

With a small advertised spread and an even smaller actual one there was a brief period when the Bid and Ask were constant before 9:13am when was a relatively minor sell of 50K that caused the bid to drop to 8.50p . This was followed quickly with another sell of 30K  and then 45K which caused the Ask to drop, and then another Sell of 50K which caused the Bid to drop again back down to 8.25p. With PIs already having bought more than 700,000 more shares than they sold that morning the Market Makers were even less ready than usual to allow potential shorters to come in to take advantage of a small spread – thus it was shorter avoidance 101 – keep the Ask constant and drop the Bid.

Evidently the tactic put off any opportunistic sellers and only buying occurred until noon, when the Bid was returned back up to 8.50p. The nett trade position remained above 400K until 3:23pm, when the first (250K) of two strange Sells occurred. This was followed just under four minutes later by a similar Sell of 130K, which between them knocked the nett trade position for the day back to very close to neutrality. The trades are strange in that they were reported on the LSE trade log both at the time that they occurred and again after hours – with both prices being the full share price paid. On the London Stock exchange site which we might have greater confidence in, again both reports are shown but one has a share price shown that is 1/100th of the true share price – see the screenshot below:

At this point I cannot say what causes the curious reporting of these trades but have classed them as ‘Y-trades’ (Y as in ‘why on earth are they reported like that ?’) – but it is evident that only a single trade is really happening in each case and that these trades should not be double counted, which you might do if only viewing the LSE trade logs. On inspection a similar Y-trade occurred at 8:20am – and this has been taken account of in the graphs and analysis shown above.

An extremely low after hours uncrossing trade at 8.50p led again to the closing price being misreported on LSE as 8.50p. This was followed soon after by a trade of 350K at 8.75p which is surely too precisely on the actual Bid-Ask mid-point to be a genuine sell to or buy from a PI, and has been classed as an Inter-MM trade, thus not affecting the day-end nett trade position.

The SP was reported as closing at 8.50p (up 0.25p on the previous days close) but in reality it should have closed at 8.75p. Volume was 3.2M (1.61M Buys vs 1.58M Sells.)

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