This counter has a BUY indicator for long term on Tradingview, if you look at daily technicals its a strong sell. So if you are looking to flip a few coins within hours/days, don't kid yourself on this counter.
I am a newbie,.. can anyone enlighten me... on 22 Jan when this owner announced MOU at lunch break, then they halt the tradding for 1 hour (1430 to 1530), why the price can suddenly jumped up to 0.315 from 0.285, and immediately dropped from 0.315 to 0.2++ within 1 minute from resuming.. is this some kind of trick by the owner?
PaulLim: the price is dictated by market maker (please please google the term and spend some time reading from multiple sites). They are another party in the exchange that:
1. provides liquidity in the market, for example one stock with daily low volume but yet the buy/sell queue is always there because their job is to provide both a buy and sell bid at all times. Without them, you can hardly find any buyer or seller in a very slow moving counter. Without them, it also causes delay in your buy and sell transaction which will caused the market to be much less liquid
2. can take BIOHLDG for example - without them tomorrow, you may find all sorts of gap up or gap down opening price. With them around, they can dictate the opening buy and sell bids. Hence the irregular price you observed on 22 Jan. They can manipulate the price a few bids up or down based on corporate news etc
3. another example is during the covid-19 crash last year. They have to fulfill their obligation to provide liquidity even when the whole KLSE is in fear, hence you still see huge buy/sell queue as though there are a lot buyers and sellers when in fact many are avoiding the market
Many more examples can be found on the net. At least that's how I understand why the buy/sell queue can come and go 'magically'.
Based on this knowledge, another speculation is that the market makers will control the price around company's corporate exercise activity for eg. BIOHLDG rights issue indicative price of 0.23. That has been almost the case for most RI counters hence it should be no different for BIOHLDG.
Expect price to hover around 0.2x for some time until the RI exercise completes... also any price spike especially coming quarter result can only be temporary I think, the market maker cannot set the price range too far from the RI price and let too many to escape...
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Haoger
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Posted by Haoger > 2021-02-14 19:58 | Report Abuse
0.15 soon