What is the market Journal?
The market journal shows, at a glance, a summary of the day’s activities on the
GASCI stock exchange.
There are a lot of columns here – what do they all mean?
The market journal has a lot of information of use to investors and potential
investors. The information can usefully be considered in two sections:
When someone places and order to buy or sell shares they can attach a limit
price that is the highest price they are willing to pay to buy the shares or the
lowest price they are willing to sell the shares at.
GASCI operates a consolidated limit order book, on which the registered brokers
enter the amount and price of all limit orders if they can not fill them in
house or on the trading floor.
At the end of day GASCI publishes a summary of the positions left on the book –
that is unfilled orders which are available to trade against. GASCI publishes
the following information on the market journal:
The price of the outstanding order(s) to buy (bids) with the highest price
attaching at the end of day’s trading activity.
Vol Bid (000s):
The total volume (in thousands of shares) of all outstanding orders to buy
at the end of day’s trading activity. Note that some of these orders may be
below the Best Bid price.
The price of the outstanding limit order(s) to sell (offers) with the lowest
price attaching at the end of day’s trading activity.
Vol Off’d (000s):
The total volume (in thousands of shares) of all outstanding orders to sell at
the end of day’s trading activity. Note that some of these orders may be above
the Best Offer price.
What does this tell me!?
If you want to buy shares, the best offer gives you a good indication of the
price you will have to pay to be fairly likely to pick up the shares (remember
if there are more bids than the amount of shares on offer at the best price then
the shares will go on a first come first served basis).
Similarly if you want to sell shares the best bid gives you an indication of the
price you will get for them (though if there are more offers than the amount of
bids at the best price then only those sellers who are first in line will get
their shares away).
Of course, you can always put in a slighter lower bid than the best offer or
slightly higher offer than the best bid in the hope that someone on the other
side does the same thing and you meet at a price in the middle somewhere!
The volume bid and offered gives an idea of the degree of marketability – all
other things being equal the stock with the higher number of bids and offers has
more stock available to trade so there are more likely to be trades in it.
An imbalance between the volume bid and offered indicates that there is excess
demand (if bids exceed offers) or supply (if offers exceed bids) which may put
upward or downwards pressure on prices respectively since with excess demand
buyers will have to outbid each offer for the scarce amount of stock on offer
while with excess supply sellers will have to undercut each other to get the
shares away to a limited number of buyers.
Finally the difference between the best bid and offer is called the spread. A
low spread generally indicates that shares are marketable and frequent trading
should be expected, while a large spread is an indication of unmarketable shares
where there are infrequent trades (if any). Examples of stocks with small
spreads are DIH and DDL – they have spreads of just a few points and have been
the market leaders in terms of numbers of transactions and volumes. At the other
extreme, SPL had a spread of $45 at one point – there has yet to be a trade on
the exchange in this stock.
The rest of journal deals with trades which have taken place during the trading
session. A buyer and seller agree on a price and agree to trade the shares, that
is the seller agrees to transfers a number of shares into the buyer’s name in
exchange for the consideration (the price times the number of shares)
The opening price is the closing price from the previous session, or if the
Board has invoked a single price auction then the auction price. The closing
price is defined as the last trade from the previous session.
Market Weighted Average Price: The average price of trades throughout the day,
weighted by the consideration in respect of each trade.
The lowest price at which shares traded during the trading session.
The highest price at which shares traded during the trading session.
The price of the last trade of the day.
Last Trade Vol (000s)
The total number of shares (in thousands) traded in the last trade
Last Trade Date
If there was a trade this session then this is blank, otherwise the date the
last shares were traded on.
Total Volume Traded (000s)
The total number of shares traded (in thousands) during the day.
What is the share price/market value of my shares?
It depends! In some dealer (quote) driven markets eg the UK Government Bond
(Gilt) market, the market value is taken to be the mid point between the best
bid and the best offer quoted. In large order driven markets eg the London Stock
Exchange, the convention is to take the price of the last trade as the market
value. However, in a small order driven market such as this one a single small
transaction at the end of the day at a price well above or low the rest of day’s
activity would severely distort the value based on this measure. So it may be
more appropriate to take the MWAP, which is an average of the trade prices
during the day which also gives more weight to the prices at which large
transactions took place during the day. It is thus less susceptible to
distortions from a small transaction at an anomalous price.
In any event if trading is very thin (few shares were traded) then this will
give less credibility to any measure of market value.
I have seen the movement in US share prices shown on CNN – is there an
equivalent figure for GASCI?
Yes, just take the last trade price and subtract the opening price to give
the change in price on the day.
Where can I get the market journal?
The market journal can be viewed at the offices of GASCI at the end of the day’s
activities and a hard copy is available for a nominal fee.
It is also published on this website
www.gasci.com/results/current.htm, along with archives of the previous
What do the Mnemonics stand for?
This is a shorthand way of writing out the security name – instead of
writing “Demerara Distillers Ltd, ordinary shares” we represent this with “DDL”.
The mnemonics for the securities currently traded on the exchange are as follows
(all are ordinary shares):
||Trinidad Cement Limited
||Banks DIH Limited
||Caribbean Container Incorporated formerly
Seals and Packaging Industries Limited
||Citizens Bank Guyana Incorporated
||Demerara Bank Limited
||Demerara Distillers Limited
||Demerara Tobacco Company Limited
||Globe Trust & Investment Company Limited
||Guyana Bank for Trade and Industry
||Guyana Stockfeeds Incorporated
||J.P. Santos & Company Limited
||Property Holdings Incorporated
||Republic Bank (Guyana) Limited
formerly National Bank of Industry & Commerce Limited
||Rupununi Development Company
||Sterling Products Limited