Digi: Supply Backwash

Finding Traction

Yesterday the new Digi shares were deposited into the CDS of shareholders though these shares could all be disposed on 21 November when Digi goes ex. Those sold will be delivered today which is T+3 according to Bursa rules of trading.

Psychologically, sellers who are not initiated with these rules will start selling off excess holdings from today onwards.I expected a fall despite the Germans having failed to sell their so-called gold standard bonds which plunged Wall Street yet further down.

Tittering below overnight on the opening, Digi descended to RM3.63 for an initial 9 sen down. Unlike yesterday,there is not widespread dealing on Digi. Digi will have to find traction somewhere along the RM3.60 sen band. If not it will go down to the next band of RM3.50.

No really big buying and so I guess it is only retailers' play today.

Digi took a reasonable fall of 6 sen to RM3.66

Digi shares ended at RM3.66 for a 6 sen fall. Fair price given the German bond debacle.