Chapter 1192: OPEC's big move!
"What's the situation with Xiao Si Industry?'
After calling Song Zongyu and the others back to the office, Xia Yu asked about the situation with the other target.
'Boss, we borrowed a total of 52.5568 million shares of Koshi Industries' stock, and sold a total of 26.25 million shares last week.'
'Because we sold more, the stock price fluctuated slightly, with an average selling price of 1,356.25 yen and a return of 35.601 billion yen.'
Matsumoto Yu respectfully reported the situation to Xia Yu.
'What is the daily average trading volume in the stock market?'
Xia Yu pondered for a moment before suddenly asking:
Matsumoto Yu immediately replied: 'Boss, the stock turnover rate of Xiao Si Industry Company is relatively high. Last week's turnover rate fluctuated around 17%.'
'The volume we sold accounted for about 21% of the turnover.'
Xia Yu suddenly understood.
This proportion is not bad.
After thinking for a moment, Xia Yu instructed Matsumoto Yu, 'In that case, don't borrow any more, and be sure to sell all the remaining 20 million-odd shares this week!'
'Yes!'
Matsumoto Yu replied, bowing his head.
...
With the stock price of Taiyo Gyogyo so high, naturally, shareholders and institutions were highly motivated to sell their shares. Nomura Securities had a shortfall of 53.25 million shares, which were sold that afternoon.
After buying enough shares, Nomura Securities stopped buying. After all, with such a high stock price, they didn't have a lot of money to spend, and they wanted to spend it here.
It is worth mentioning that after Nomura Securities stopped acquiring, Jiuding Securities withdrew that huge purchase order, and suddenly the stock price of Dayang Fisheries Co. fell from 330 yen per share to about 310 yen per share, which made Shanbei and the others angry and want to vomit blood.
They could only avoid it by not looking at it.
In order to acquire the 53.25 million shares, Nomura Securities spent 17.6 billion yen.
Add the 7.893 billion yen spent on buying shares over the weekend.
In order to buy back the same amount of 77.3 million shares borrowed during the bet, Nomura Securities spent a total of 25.493 billion yen.
However, because the delivery plan was disrupted and tens of millions of shares were sold at a super low price, the amount of funds returned was much less than expected, and only 20.752 billion yen was returned.
After deducting this amount, Nomura Securities lost 4.741 billion yen in the short sale of Dayang Fishery!
This is equivalent to 11.7% of last year's net profit!
Not to mention the human and financial resources consumed and other investments delayed.
Not only that, but Nomura Securities originally did not plan to repay the stock end of the bet so soon, so more than 10 billion yen of the funds previously shipped had already been spent elsewhere. Abruptly repurchasing the stocks of Dayang Fishery Company is extremely costly, which has led to a considerable decrease in the company's liquidity.
It can be said that Nomura Securities has suffered heavy losses!
This is definitely a disgrace for Junichi Hyuga, who led Nomura Securities to rise and create glory!
What's more, Wells Fargo is now short selling their company on a large scale. Although it is not yet known where the stocks have gone, it is certain that there is a conspiracy.
They had originally planned to make the first quarter's financial report look more impressive, but this single loss will cancel out a large part of the gains.
It is now mid-March, and the first quarter is coming to an end. It is difficult to find another excellent investment opportunity.
Therefore, a decline in the company's stock price is inevitable.
Thinking about this, Junpei Hinata's heart was full of depression.
Jiuding Securities naturally became his number one target.
Thinking about how Jiuding Securities had borrowed 23.5386 million shares of Island Tiny Wire Industry from his company last week, he felt uneasy. There must be a conspiracy!
'No, we must investigate the situation immediately and mobilise funds. Jiuding Securities must be up to something if they dare to short-sell so aggressively!'
After thinking about it, he immediately gathered his subordinates to discuss a countermeasure.
...
While the island was in turmoil, another major event affecting the global economy occurred internationally.
On 17 March, the Organisation of the Petroleum Exporting Countries (OPEC) lowered oil prices for the first time in history, reducing the export price to 29 US dollars a barrel and increasing production by 800,000 barrels a day!
Once the news was announced, it spread around the world in an instant, sending the capital markets into a panic.
This news was definitely bad news!
You see, since OPEC was founded in 1960, the price of crude oil has risen from a few dollars a barrel to a peak of 39 dollars a barrel, so there is simply no need to lower the price of oil.
And the high oil prices have also led to a significant increase in costs in many industries, seriously hindering the development of the world economy, and making it difficult for Europe and the United States and other countries in deep economic trouble to climb out.
Now that OPEC has lowered the price of oil for the first time in history, the world does not know how many people are cheering, and the capital market has suddenly become active.
Of course, the reasons and purposes of OPEC's decision to lower oil export prices and increase oil production were quickly analysed.
The key was the sovereign debt crisis in Latin America.
In 1960, OPEC was founded by Iran, Saudi Arabia, Iraq, Kuwait and Venezuela. Of the five founding members, only Venezuela is in Latin America; the other four are in the Middle East.
Then over the past 20 years, five countries have joined OPEC: Libya, the United Arab Emirates, Algeria, Nigeria and Gabon, increasing the number of OPEC member states to ten.
But looking at these ten member states, five are in the Middle East, four are in Africa and one is in Latin America.
And the power of discourse is actually in the Middle East.
The sovereign debt crisis in Latin America has led to chaos in the economies of oil-producing countries in Latin America, and unrest within the country has not only led to a significant impact on oil production.
It is precisely for this reason that oil prices, which had been declining since the second oil crisis, began to fluctuate at a high level at the end of last year.
The market demand is there, and the Middle Eastern tyrants made the decision to lower oil prices and increase oil production in order to expand their market share, increase the Middle East's control over the global oil sector, and strengthen their influence over countries around the world through the petrodollar system.
It can be said that OPEC is stabbing at Latin American countries that are trying to recover their economies. The only member state of OPEC in Latin America, Venezuela, is unable to stop it.
What's more, Venezuela also gets a share of the profits, and it can get out of the crisis as soon as possible. What does it care about other struggling countries in Latin America?
While countries in Latin America and European and American oil companies are gritting their teeth,
countless funds have poured into major financial markets.
However, while stock markets have soared, the international crude oil futures market has plummeted.
Large sums of money poured into shorting oil futures.
And the original shorts also realised that the opportunity had come, and seized the opportunity to massively cover their positions to suppress the price.
Under these circumstances, no institutions joined the long positions at all, resulting in a complete imbalance of long and short positions.
The price of light crude oil futures on the New York Mercantile Exchange plummeted.
In less than two minutes, the price of crude oil futures plummeted from $29.99 a barrel to $29.17 a barrel, and the longs suffered heavy losses!