Shorly after the end of trading each day there's a UT trade that goes through the market. From what I understand this is a kind of balancing trade and mops up unfilled buy and sell orders with a sort of auction process.
But what I'm wondering and what I hope some much more knowledgeable people on here will be able to tell me is - can we take anything from this UT trade?
One of the shares I'm following is Card Factory (LON:CARD) which I bought recently following a trading update where the share price fell much more than I felt was warranted. I bought a reasonable amount (a) for what I thought was a decent entry price and (b) for what I felt was a fairly safe and decent dividend.
So, I've had a decent bounce but is the UT trade telling me anything? Today, for instance, the SP had been up a little with not much volume but then the UT trade goes through a fair bit higher than the share had been trading at and with over 55% of the day's total volume.
Does it mean anything?
From my experience the UT trade at session end isn't much of a guide to the next day's opening price, especially if it deviates a lot from nearby trades. I tend to ignore it.
However, I understand that the UT price determines the official closing price for the day. This is important for whenever a company issues a statement including that price, eg. for a rights issue, etc. It also determines the daily valuation of unit trusts and investment trusts
