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Discussion Topic:
Large ASX retail broker spruiking gold stocks
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trevbus |
10-06-2008 @ 5:22 PM
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Joined: Jul 2007
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Let's see if Commsec start showing XGD on their market indices page.....
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CommSec Technical Support.
Original Request:
ID: 851434
Classification: CommSec
Sub Class: Suggestions/Enhancements
The following request was made using the CommSec Online Internet Technical Support Form:
Enquiry: Here's something that would help Comsec:
The Market Indices page does not show XGD, the ASX Gold Stocks index! This is one of the only indices up today!
Please add it to the list!
Without short selling, Comsec needs to find stocks for clients go long in, how about telling people about XGD! You win, I win!!!! Do it!
Regards,
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capro |
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09-29-2008 @ 7:41 PM
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Thanks all.
That however doesn't answer how NAKED shorting can be done on ASX.
(OK, I see the day trade as possible, but then prices would bouce up end of day, so that doesn't fit the price action we have seen.)
My thinking has all the time been that there isn't naked shorting in Australia.
Instead the prices have just suffered from poor sentiment, overnight losses in dual listed shares and normal selling pressure at small quantities at key points. From what I have seen the quantity of traded shares (mining) has generally remained very low (except for LGL, NCM, OZL and a few other larger). That also means if buying comes back, we can quickly see a snapback up 100% as there are no sellers around.
But please enlighten me if I am wrong regarding naked shorting in OZ as this would be most interesting to know.
Micki
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trevbus |
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09-29-2008 @ 7:26 PM
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Joined: Jul 2007
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How's this for irony. Commsec are scrambling to point to stocks clients can go long in now that short selling is banned.
Their spinners have been on radio again this morning pointing to Lihir and Newcrest, but their market indices page doesn't include XGD (ASX Gold stocks), the only index which is (was) up today!
http://www.comsec.com.au/ClientAccess/Indices/MarketIndices.aspx
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trevbus |
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09-29-2008 @ 5:31 PM
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Interestingly CTO which has been showing terrible sentiment has had absolutely not one short in all the time I have been monitoring this data
http://www.asx.com.au/data/shortsell.txt
That said, naked shorting could hold the price down and not be reported. Now it will be banned thanks to ASIC.
I think it would have been very easy for Commsec to do naked day short selling on clients' behalf, it just has to put out a sell order. Then later in the day it has to put a mandatory buy order in on the client's behalf so that it doesn't have to deliver to the stock.
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dermer |
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09-29-2008 @ 12:17 PM
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I believe there is a list of stocks shorted on the ASX, but it may not be acurate. Sorry, don't have the link, but try asking your broker about this. The ASX precious metal stocks have certainly been battered beyond reason and any restriction finally being imposed on shorting has got to be positive.
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capro |
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09-29-2008 @ 1:54 AM
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I've also heard ab out naked shorting on ASX.
I however thought the Aussie system prevented this as we don't have the same "I O U some shares" system that the broers have in US.
Can anyone confirm and explain how naked shorting would be done on ASX?
Micki
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trevbus |
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09-28-2008 @ 8:51 PM
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Listening to breakfast radio this morning, the Commsec analyst repeatedly mentioned gold stocks as a good bet this trading session. She mentioned it has surged on Friday US time - which it did but then fell back. This spin job tells me they are trying really hard to shine the light on gold.
Now that short selling is banned on the ASX this large retail broker needs to find securities to get people excited about buying. In particular they were offering day short selling (mandatory buy back before the close) until the ban and I don't think it is returning ever because it was probably naked short selling - might explain dismal performance in some stocks without it showing up on the short sell stats.
This big retail broker need to fill the gap in their revenues and think gold stocks are almost the only sector worth spruiking!
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