‘Single share’ transactions galore at CSE

The number of transactions of just a ‘single share’ and trades of less than 10 shares per transaction has risen in recent weeks at the Colombo Stock Exchange (CSE) causing the authorities to track the trends to ascertain its cause.

Asked about this unusual movement, sources at the CSE said this could be shares bought by university graduates and commerce students to get access to an annual report or attend an annual general meeting as a learning experience.

“However since you have raised this, we’ll track and see whether there are other reasons for this unusual movement,” one source told the Business Times.

For example on Tuesday, there were 36 transactions of 10 or less shares, many being just one share. On Thursday there were nearly 20 such transactions. One explanation could be that with a large number of AGMs, students want to attend these meetings and learn the way business is conducted.

But some brokers said some investors may be using this as a method to manipulate share prices up or down – especially in the case of thinly-traded, illiquid shares. “It is now common for the day’s top gainers and losers to be dominated by shares that have traded under 100 shares for the day,” one broker added.
http://www.sundaytimes.lk/120722/business-times/single-share-transactions-galore-at-cse-6468.html

Instead of fixing minimum quantity issue which would have sorted this problem they made 1 share sales allowed by fixing the cds/sec/broker fees issue.

I think this is mainly due to manipulation.

Anyway I still don;t understand why they can;t/won't enable "minimum quanity" box in our trading systems. What harm will happen if they give that as an option.

Minimun Qty 100 is better keep less than 100 they have to remove from the market then only we can see the real market movement.

Or else many researchers amidst us !

slstock wrote:Anyway I still don;t understand why they can;t/won't enable "minimum quanity" box in our trading systems. What harm will happen if they give that as an option.

I consider this as a good facility to help retail traders who are unable to buy 100 shares or its multiples of high value shares to accumulate their portfollio with little savings they have. One sure way to stop misuse of this facility for manipulation is to simply ignore all trades below 100 shares especially when calculating the indices and also portfolio valuations at the end of the day. Also such transactions should not be displayed on the board as they are disregarded for trend calculatioins. It is simple as that. I don't hink this is a difficult exercise for the software people.

K.Haputantri wrote:

slstock wrote:Anyway I still don;t understand why they can;t/won't enable "minimum quanity" box in our trading systems. What harm will happen if they give that as an option.

I consider this as a good facility to help retail traders who are unable to buy 100 shares or its multiples of high value shares to accumulate their portfollio with little savings they have. One sure way to stop misuse of this facility for manipulation is to simply ignore all trades below 100 shares especially when calculating the indices and also portfolio valuations at the end of the day. Also such transactions should not be displayed on the board as they are disregarded for trend calculatioins. It is simple as that. I don't hink this is a difficult exercise for the software people.

Fact.
But psychological factors are playing lot on investors regarding the index?

WARNING WARNING

dont buy a single share,SEC will send you letters asking for explanations why you bought a one share

but as most people says,"This is not over regulation by SEC" .......

my foot

they implement a damn system and try to catch little guys and punish
well done SEC
keep it up

If I can buy 100 shares of NEST every month, I DONT need to invest in STOCK MARKET!

Market Sucker wrote:WARNING WARNING

dont buy a single share,SEC will send you letters asking for explanations why you bought a one share

but as most people says,"This is not over regulation by SEC" .......

my foot

they implement a damn system and try to catch little guys and punish
well done SEC
keep it up

My friend, little guys can always explain easily as to why one share was bought, the reply being because I cannot afford to buy more than one share, which will be readily accepted by the SEC but the big guys cannot give the same reply and escape. They should give some other plasiable reply to escape punishment. This is a lame argument recently coined by manipulators to tarnish the SEC. Hence, do not get cought to the tricks of manipulators.

K.Haputantri wrote:

slstock wrote:Anyway I still don;t understand why they can;t/won't enable "minimum quanity" box in our trading systems. What harm will happen if they give that as an option.

I consider this as a good facility to help retail traders who are unable to buy 100 shares or its multiples of high value shares to accumulate their portfollio with little savings they have. One sure way to stop misuse of this facility for manipulation is to simply ignore all trades below 100 shares especially when calculating the indices and also portfolio valuations at the end of the day. Also such transactions should not be displayed on the board as they are disregarded for trend calculatioins. It is simple as that. I don't hink this is a difficult exercise for the software people.

If they want to promote odd lots due to liquidity then there is still no harm leaving "Minimum Fill order" box enabled as an OPTION right. I see no reason why they cannot enable this for those of us who do not want to sell 1 share.

slstock wrote:

K.Haputantri wrote:

slstock wrote:Anyway I still don;t understand why they can;t/won't enable "minimum quanity" box in our trading systems. What harm will happen if they give that as an option.

I consider this as a good facility to help retail traders who are unable to buy 100 shares or its multiples of high value shares to accumulate their portfollio with little savings they have. One sure way to stop misuse of this facility for manipulation is to simply ignore all trades below 100 shares especially when calculating the indices and also portfolio valuations at the end of the day. Also such transactions should not be displayed on the board as they are disregarded for trend calculatioins. It is simple as that. I don't hink this is a difficult exercise for the software people.

If they want to promote odd lots due to liquidity then there is still no harm leaving "Minimum Fill order" box enabled as an OPTION right. I see no reason why they cannot enable this for those of us who do not want to sell 1 share.

Agreed, its one way of resolving the issue.

slstock wrote:

K.Haputantri wrote:

slstock wrote:Anyway I still don;t understand why they can;t/won't enable "minimum quanity" box in our trading systems. What harm will happen if they give that as an option.

I consider this as a good facility to help retail traders who are unable to buy 100 shares or its multiples of high value shares to accumulate their portfollio with little savings they have. One sure way to stop misuse of this facility for manipulation is to simply ignore all trades below 100 shares especially when calculating the indices and also portfolio valuations at the end of the day. Also such transactions should not be displayed on the board as they are disregarded for trend calculatioins. It is simple as that. I don't hink this is a difficult exercise for the software people.

If they want to promote odd lots due to liquidity then there is still no harm leaving "Minimum Fill order" box enabled as an OPTION right. I see no reason why they cannot enable this for those of us who do not want to sell 1 share.

Yes I think about it as a violation of sellers/buyers right also.....they should have option to sell or buy minimum amount they want.