How Clientele shares sold for 21 cents instead of R21

Cape Town - A trigger mistake to sell Clientele's [JSE:CLI] shares at a limit of 21 cents per share, which sent shares plunging to a record low, was meant to be R21 per share, the JSE told Fin24 on Thursday.

Clientele's shares have recovered after tanking due to a trigger mistake on Wednesday.

“Although the first indication was that the drop in the price of Clientele shares was due to a seller entering a market order, further investigation has revealed that in fact the order which was entered was to sell at a limit of 21 cents per share," the JSE noted.

"The client, who entered the order through an online trading system, has been contacted and has explained that he entered the order in error. His intention was to sell at R21 per share."

The JSE explained that orders may be entered into the order book either as limit orders, orders to buy or sell at a maximum/minimum price, or as market orders.

"A market order is unpriced and will match with whatever orders there are in the order book until the total quantity has been executed.”

The share price of Clientele, which offers life, funeral, legal and health-insurance products, traded between R14.05 -R15.00 on Thursday. It closed up 1.43% at R14.20.

This after nosediving 99% to 21 cents with 488 securities changing hands after the order error, according to data compiled by Bloomberg.   

"The resultant trades did not meet the requirements for a trade cancellation in terms of JSE rules."

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