But that is not the whole story. In the last half hour of trade on Thursday, which is weekend here, someone put on sale a portfolio of about 10 million dollars. Prices collapsed and in some shares, the trading was closed down. Who did it and why? The speculation is that someone with lots of put options caused the collapse of the market, profiting from his options. Otherwise there is no explanation, because no investment house nor a rational investor sells at the last hour of trade such a large amount of shares. It will become clearer in the coming days. Someone commented:
I wouldnt invest in a stock exchange that can be manipulated heavily (-11% on an index) with less than 9 Million Dollars. That's NOTHING. If this created such a move.. it means no buyers on the other side at all. Too low of a volume.But he forgets that the manipulation was made in the last hour of the last day of the week. Traders were taken by surprise.
Follow Up: It was Kesem Mutual Funds that threw the packet to the market, and they say it was a standard end of the day operation, but the weakness of the market was something they did not expect.