If a stock is only listed in the Australian stock exchange, why is the opening price not the same as the previous day's closing price?
I could understand the price changing if the stock was listed on exchanges in other countries because there would be activity while we were closed. What happens overnight to affect the price of local stocks?
Regards
John
prawn_86
22nd-February-2008, 10:18 AM
Overseas markets results effect a lot of stocks regardless of wether they are dual listed or not.
The ASX tend to take its lead from the DOW unfortunately, so if there is a big up or down day on the day, our opening prices will most probably be affected.
Other things that can affect some stocks (mainly top 200) include economic news/data, or possibly even currency movement overnight.
Trembling Hand
22nd-February-2008, 11:21 AM
If a stock is only listed in the Australian stock exchange, why is the opening price not the same as the previous day's closing price?
You are kidding aren't you ??
CFD
22nd-February-2008, 01:46 PM
John I thought I would answer your question in appreciation of your software.
In theory the closing price would be whatever the last trade of the day was and the next days opening price would be whatever the first trade of the day was. So whilst you might expect them to be similar, it would be unusual for the to be the same. However (unfortunately) the ASX conducts auctions both after the close and before the open, so the next days opening price could be any dam thing.
skinner36
22nd-February-2008, 03:40 PM
Thanks guys,
Trembling Hand, I'm not sure if your comment indicates that you think my question was extremelly silly or not. If it does, please rest assured that even though I am a novice I am still trying not to waste the time of forum members.
If the question was considered stupid by forum members then please accept my appology.
regards
John
Trembling Hand
22nd-February-2008, 04:18 PM
I was being a bit of a smart ****.
But why does the price move from second to second let alone one whole day later. Because the share market is a continual auction. People base there buying/selling decisions on the information they have which is constantly changing. 24/7 from sec to sec.
Why do you think it should trade at the same price as yesterday?
