guru267 wrote:VituVingiSana wrote:100 shares! That is pathetic yet it is a market trade. Also note that 100 shares @ 125 = 12,500 but 100 Olympia = 100 @ 4 = 400 so 3,000 Olympia is the equivalent of 100 BOC.
I find it irrational where 12k changing hands results in tens of millions in market value gains!
Well, that is the 'market' price determined by the exchange of a portion of the shares (bids/offers available) on the 'market' just as a fraction of land or houses or flats changes hands annually yet the 'market price' is based on these trades.
Even Safcom with 40,000,000,000 (MV 363 Billion) shares had less than 11mn (less than KShs 100mn) shares traded on Friday. 11,000,000/40,000,000,000 = 0.0275% were traded & that changes the Market Value.
And there are some days when even fewer than 11mn Safaricom are traded.
Back to BOC. You like other market participants have a choice to buy/sell shares. If you think 125 is too high a price, then sell. If you think 125 is low, then you buy or bid a higher price to attract more sellers. Perhaps the higher price set will attract more offers which then might be picked up by more buyers.
I looked into the details (Bids & Offers) & it turns out Buyers (Bids) want BOC at lower prices 110-115 but the Only Seller (Offer) wants 125. Eventually, one of them will give in and a lot depends on BOC's performance (EPS) in 2H or potential for growth in years to come. The 1H 2013 performance (EPS) was nothing to write home about.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett