Especially for a stock, this 'daily window dressing' happened frequently in the past. Prior to Bursa Trade Securities implementation.
FBM KLCI The last 30 minutes sudden surge pattern. See the above FBM KLCI 30 minutes chart (click for a larger view).
Maybe you already aware of this: FBM KLCI displayed some uncommon last 30 minutes sudden change for a few days within the last 5 trading days. On 14th Dec 09, the composite index closed at 1,265.45 which is a 5.41 pt gain (0.429%) from the 30 minutes before. This is a huge gain within 30 minutes time frame. On 15th Dec, it closed at 1,270.81 pt which is a gain of 7.73 pt (0.612%) from the last 30 minutes close. After that, on 16th and 17th there were more of regular patterns. Then as at yesterday (21st Dec) , there was another sudden surge but this time it is a loss of 6.97 pt (0.552%) from the last 30 minutes close.
Especially for a stock, this 'daily window dressing' happened frequently in the past. Prior to Bursa Trade Securities implementation (launched 1st Dec 08, read: Bursa Trade Securities) , the last trade done will decide the close price even it just 1 lot and regardless what the price the counter traded for the whole day.
Anyway, can we trade based on this pattern? I will say, let's just forget about the idea of 'buying KLCI heavyweight stocks at the 29th minutes before closing'.
Why is this happening? According to Bursa Malaysia Bhd last week, they will analyze this phenomenal. Just wait for Bursa analysis results.
Just for comparative analysis, see the FM KLCI heavyweight champion, CIMB's 30 minutes bar chart on the left. (click the chart for a larger view)
You may also want to re-visit: How to do KLCI magic
