Sell off of BHP & ANZ & WBC

[dutchie]

Looks like BHP & ANZ & WBC will have red days.

Someone is selling 1 million ANZ
Someone is selling 2 million BHP
Someone is selling 1 million WBC

 

[dutchie]

Wrong again.

Big buys have come in.

Whats going on ???

 

[GreatPig]

Opening estimates on NAB currently showing many of my stocks at about 4% down.

That won't be pretty...

GP

 

[GreatPig]

Now huge buys have come in and it's all gone green.

What the...???

 

[dutchie]

Computer Malfunction at ASX (or Commsec) ????

 

[sails]

I don't know if it has any relevance, but index options and futures expire today. Perhaps there is some large hedging (manipulation???) activity going especially with these shares that are heavy weight on the index.

Here is a quote from the SFE contract specifications for the SPI (ASX200 futures) re the Cash Settlement Price:

The Special Opening Quotation of the underlying S&P/ASX 2002 Index on the Last Trading Day. The Special Opening Quotation is calculated using the first traded price of each component stock in the S&P/ASX 2002 Index on the Last Trading Day, irrespective of when those stocks first trade in the ASX trading day. This means that the first traded price of each component stock may occur at any time between ASX market open and ASX market close (including the Closing Single Price Auction) on the Last Trading Day.

http://www.sfe.com.au/content/sfe/trading/con_specs.pdf

 

[GreatPig]

Back to normal now anyway. My portfolios are mostly opening up a bit.

I can close this top floor window now...

GP

 

[dutchie]

Sails

I think you might be right. There was a lot of jockeying of prices (big movements up & down) during the opening auction.

BHP sold about 1 million shares before open - anyone know the prices?

GreatPig

Yes, close that window and keep it shut for a while.

Actually don't go that way at all mate, money isn't everything!

 

[Prospector]

Back to normal now anyway. My portfolios are mostly opening up a bit.

I can close this top floor window now...

GP

Jeez I'm glad I had to go out this morning and have only just read your original post

 

[sails]

Dutchie, all settled down again now and looks very much like the big boys wanted a high settlement price. Many people don't realise how much derivatives affect the underling especially at expiry and much more so when the big boys have large positions in them. I just totalled up the open interest just for the ASX200 options this morning and there are 39,867 calls and 62,189 puts and then there is more again the the futures market - a lot of underlying value here.

GreatPig, the next index expiry is the 15th June - suggest you put that in your calendar so you can keep that window firmly closed! However, not all index expiries are quite as dramatic as this one.