Feb-2011 futures drop 44.5 points at one time this morning to 1477.5 points. The huge drop may have caused by:
i) Algorithm trading rules set by futures player in which orders to SHORT are executed when the index broke below certain support level
ii) Key in error in which the futures dealers key in the customer order to short wrongly
Today's V-shape recovery of index may have been caused by this as well.
At 9.16am, Feb-2011 Futures plunged 44.5points to 1477.5, KLCI was around 1515 to 1519.
At 9.19am, Feb-2011 Futures recovered to 1500, KLCI plunged to lowest point of 1505.36 points
Conclusion:
Feb-2011 plunge seems to have lead to huge sell off for index linked stock this morning.
This blog is related to observations regarding stocks traded in Malaysia. Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
No comments:
Post a Comment