Market manipulation appears to be rife on the Australian sharemarket
when compared to other major markets around the world, according to the
country's leading market researchers.
The dramatic price spikes which occur just before the markets
close at 4pm – the strongest proxy of market manipulation – are being
used to boost bonuses for rogue fund managers, the researchers claim.
The dramatic price movements occur in the last 15 minutes of
trading each month, quarter and end of financial year and most likely
relate to fund managers lifting their trading results which are
measured on the key dates.
"They are getting money in all the time but instead of buying
it every day they save it and buy it at the last minute to drive more
demand," chief executive of the federal government-backed Capital
Markets Co-operative Research Centre, Michael Aitken, told The
Australian Financial Review.
For example, on December 20 last year, $23 million was traded
in the last 15 minutes for just three stocks, Village Roadshow, Ocean
Gold and REA, most likely delivering a healthy Christmas bonus to the
rogue fund managers.
On Friday, $23 million in trading occurred for the same three stocks over the entire day.
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