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FIRST CHOICE TO BID FOR MYTRAVEL
rz4ssg - Mon, 30 Dec 02 :
8,646,779 trade today ! Buy or sell ?
As always, the answer is "both" - there are a finite fixed number of shares and so somebody must have sold these for somebody else to buy them.
This is a large transaction, it represents 0.9% of MT's quoted shares. It is not possible to call up a broker and say "Hi, I'd like to buy/sell 8.6m shares of MyTravel please." - try it and see how long they laugh at you.
Large transactions like this rarely involve a market maker, they are transacted directly between investors, so one large financial investor sells directly to another. If you actually inspect the trade data you will see that this particular trade has a trade type of "X" marked against it indicating that it is an "Agency Cross", ie one large investor has sold directly to another large investor.
Given the proximity to year-end, I would suspect that a company or fund somewhere is managing its year-end position to realise a capital loss for tax purposes.
However, why should you care what other people are doing and is there any point to watching trade data at all to begin with? You can never know for sure what has prompted a particular trade and so people can only guess and speculate, but does that actually change what you think MT is fundamentally worth?
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