Forum Archive Index - July 2000

["Rini H" <the4rs@ihug.co.nz>]

We had several postings regarding the importance of Market Depth months ago and the non-availability in NZSE.

The ASX makes them available through broker's website. Some websites even offer market depth for free.

 

I would like to hear from you, how do you really analyse the market?

We know that share prices are the equilibrium between supply (sellers) and demand (buyers).

As an example, below is Market Depth for MIM Holdings, taken at the end of trading day 30/6/2000.

How does it help the investors with the information on Market Depth below? 

Will it give you a feel whether the market will go up or down at the end of the day?

From the sample below, it seemed we have more buyers with more volume (quantity) than sellers (from sample below), will this push the price up on Monday?

Please share your opinion on how to analyse this important Market Depth if you are a buyer or a seller?

Thank you very much.

 

Rini 

 

Info on MIM: Diversified Mining, closed on 0.90 last Friday, volume 5-10 million traded everyday.

PE not available. Low-High for the year 0.81 - 1.75. EPS 0.035 Yield 3.911.

BUY

SELL

	NUMBER OF BUYERS		BUY QUANTITY		PRICES		PRICES		SELL QUANTITY		NUMBER OF SELLERS
	7		482993		89		90		226436		14
	98		1072145		88		91		534311		28
	69		829196		87		92		488219		26
	93		943878		86		93		310239		24
	139		1972060		85		94		536621		28
	69		669065		84		95		542002		41
	54		1053630		83		96		204754		25
	112		955864		82		97		161276		13
	65		705844		81		98		101741		16
	122		1016111		80		99		203061		17