Surge in margin calls as All Ords falls

Tropo · 07-07-2008, 10:27 AM

07/07/08
Surge in margin calls as All Ords falls

CommSec made about 300 margin calls last Thursday and 10 the day before. The broker's daily average is fewer than 30. Last week was a big week for margin calls as the All Ordinaries index fell under 5000 for the first time since 1996.
The average number of margin calls trebled in the first quarter of this year (the most recent data available).
There were 3.85 margin calls per 1000 clients according to RBA data.

Source: The Australian Financial Review

BV · 07-07-2008, 10:45 AM

Tropo
And the situation isn't looking the best today either.
I wonder what the % would be of those who are able to meet their margin calls...
Cheers

Tropo · 07-07-2008, 10:59 AM

Quote:

Originally Posted by BV

Tropo
And the situation isn't looking the best today either.
I wonder what the % would be of those who are able to meet their margin calls...
Cheers

Yep...
Good question.

austini · 07-07-2008, 12:59 PM

Yipee,

Hold to to your hats the rollercoaster's heading south again

Cheers - Gordon

Sacko · 07-07-2008, 01:08 PM

Time buy those stocks on special....

austini · 07-07-2008, 01:35 PM

Quote:

Originally Posted by Sacko

Time buy those stocks on special....

Yes, yes.

Cheers

crc_error · 08-07-2008, 11:15 AM

Quote:

Originally Posted by Sacko

Time buy those stocks on special....

thats true, but most people would not have money to spend due to raising LVR's!

Prehaps if you have a cash portfolio, then you may want to consider a low level of gearing to buy these specials!

Trogdor · 10-07-2008, 05:56 AM

Quote:

Originally Posted by Tropo

as the All Ordinaries index fell under 5000 for the first time since 1996.

since 2006??

Tropo · 10-07-2008, 08:05 AM

Quote:

Originally Posted by Trogdor

since 2006??

Yeh...It’s The Australian Financial Review pen pusher's error.
First time XAO broke up 5000 level in 2006 (23.03.06).