A new trading platform introduced by the Colombo Stock Exchange (CSE) at Friday’s trading was the reason for the bourse’s poor performance on that day, two stockbrokers alleged.
They told this reporter that taking the “odd lots out” from a single platform and merging such activity with normal trades and crossings, coupled with doing away with “minimum parcels” for trading was the root cause of this problem.
They said that previously shares from one to 100 were allowed to be traded on a separate platform and beyond that and “crossings” on another. But from Friday these activities were merged into one common platform.
And the other bogey was allowing for the sale of just one share only to take place at a stipulated price as opposed to a minimum of 100 shares at a stipulated price under the previous regime. These changes resulted in turnover falling to Rs. 508 million at Friday’s trading, they alleged (see connected story found elsewhere on this page).
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CSE Plays Havoc