A short sale is required at a price higher than the UPTICK RULL gauge or the last trade price. It came into effect from July 1. Control trading program or ROBOT TRADE with other extreme measures, still keeping my head down although this is a stock index but there are signs that the investment situation is changing for the better.
The trading control measures of UPTICK RULE and ROBOT TRADE are used in combination. The goal is to reduce short selling in order to lower the stock price. and prevent inappropriate trading orders from being sent by ROBOT TRADE in order to regain investor confidence.
Every party is monitoring that. Will the stock market bounce back after pushing for tougher trade oversight measures? SHORT SELL TRANSACTIONS WILL BE REDUCED?
Looking at the overall picture of the stock market, a cursory assessment of the index until it falls back below 1300 points suggests that the UPTICK RULE move will have no effect in stimulating investment.
But if you look deeper into the details of stock trading, you will see positive changes in many sectors.
The trading ratio of robot trading is more than 40% of the total trading value of the market. This is a high ratio and has played a major role in the index's continued deterioration over the long term.
On July 1, ROBOT's trading value fell by 35.43%, which may be the lowest figure in at least 1 year, and the total trading value of the stock decreased to 29,731 million baht as ROBOT's trading value decreased.
This reflects that ROBOT plays an important role in the value of stock trading. and plays a major role in guiding the ups and downs of stock prices.
Another good phenomenon is short sale programs, which have clearly declined. Last June, SHORT SELL transactions accounted for 12.88% of total trade value, but on July 1, SHORT SELL transactions fell to only 3.73% of total trade value.
A SHORT SELL is a decline in stocks. And this is another reason why the stock market continues to deteriorate. Because foreign investors sell SHORT SELL to profit from falling stocks. Until the stock market can't go up
The last good event is that foreign investors continue to sell stocks on the first day after the UPTICK RULE comes into force, which is decided to sell a ball for about 30 business days. Foreigners also returned to buy shares for the first time. with a net share purchase of 337.97 million baht
The stock index retreated, down more than 100 points since the start of the year, as foreigners sold more stocks. 2023 saw the sale of 192 billion baht of shares, following on from 116 billion baht of share sales.
Aptic's rule and other measures regulating robot trading intensity may not be a strong medicine to cure falling stocks with instant results.
But there are many positive changes in the stock market on July 1, which is a sign that the Ministry of Finance, the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand have started to act.
Investors who have suffered from long-term stock losses will regain confidence.
Because if the SHORT SELL program declines, foreign stock trading will decline. It is very difficult to buy a stock at a lower price later by dropping it.
If the ROBOT reduces stock sales
And if foreigners come back to buy back shares
Thailand's stock market will recover from recession. And restored to life, the long-delayed stock index will begin to run up
Could the UPTICK RULE be the magic pill to revitalize the Thai stock market? Just wait and see. From factors indicating that the light will hopefully disappear
The stock is booming.
