‘Single share’ transactions galore at CSE
View(s):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.
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