Trading Update – 6th Sept 2017

Alfacomp

7 September 2017

Trading really kicked off, with a couple of closely spaced 100K Sells at 8:26am and 8:27am – these were rapidly reversed within 8 minutes by big buys of 350K and 250K. A subsequent sell of 221K at 9:20am brought the nett trades figure back into the +200K/-200K band where it stayed for most of the day. As has been quite often the case in the last few weeks – there was a slight drop in the average trading price between 1 and 3pm – reflected in the drop in the Ask – however this was reversed by a 100K Buy at 3:01pm. Unlike previous days there were no Bed & ISA combined transactions identified during the day.

At 3:40pm there was another 100K Sell – and again this was rapidly taken up by a similarly sized buy within 2 minutes. It would appear that the 100k sellers are leading the action but these are being rapidly reacted to by a similarly capable Buyer or Buyers. All of this happens without any change in the Bid or the Ask – so how does the Buyer(s) know when to act ? Perhaps they are known to the market makers and are tipped off when the MMs have just got shares to sell. Or a Buyer with deep pockets is watching the level 2 screens like a hawk…

Nett trade neutrality appeared to be restored within minutes of the end of trading – certainly that was how it looked on the day. However after hours trades, reported on thursday the 7th, again rapidly absorbed the last minute Sell. This time it cannot be a Buyer who was sitting waiting to make a trade – instead the Market Makers appear to know of a Buyer who can respond rapidly to pick up the shares that the Seller or Sellers deposited into the market only a few minutes earlier – and they give them the opportunity to do this after normal trading has finished.

The SP finished flat at 10.0p, as it did for the previous two days, on a volume of 2.7M trades, down slightly (1.5M Buys, 1.22M Sells).

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