Blog Archive

Tuesday, October 24, 2006

NSE makes simple (idiotic) errors...

Does the NSE hire folks who flunked their Math classes?

This is NOT calculus but note the following!

October 19th (Thursday) TPS (Serena) share prices were shown as follows:
High - 94
Low - 85
Average - 84

This information was from the Excel File the NSE had on their website for Price & Trades downloads.

Since when was an AVERAGE lower than the minimum value in the data range?

As noted by dudej;
I do not need a Bsc in Maths to show that the if high is 94 and low is 94,the average statistic of 84 is misplaced. Even the lowest weighted average for would have to be 85. Perhaps someone accidentally replaced 94 with 84 on the average price.

It is pathetic to note such errors! What other errors are "hidden" from us?

There was another mega-goof in the past month when the price list had Olympia at 3/-.... Someone could have placed a BUY order at market expecting the maximum 10% to kick in but instead buys at 5x the price coz of a IDIOTIC error!

As dudj asked "Aren't these costly mistakes? and who is paying for them?"

Dudej, all I can say is definitely not the NSE...

7 comments:

kenyanentrepreneur said...

I think you should consider buying shares of companies listed on the Johannesburg Stock Exchange.

Why are you still bothering with the NSE if it's frustrating you so much? you must still think it's worth it in some small way. Yes? no?

Shiroh said...

Obviously it shows just how a run of the mill society, Kenyans generally are with with their work.Typos, numerical errors should be avoided

mwasjd said...

It seems they don't use the formulae in Excel to compute average price, which makes it prone to mistakes. Though since it didn't result in a big uproar or mess up trading, then maybe it's not something worth making a big deal about. To err is human?

coldtusker said...

mwasjd - To err is human but not for finance matters...

Some guy in Japan made a stupid error and almost BANKRUPTED his firm putting hundreds of jobs at risk!

http://www.msnbc.msn.com/id/10394551/

Remember the broken windows theory? If you "ignore" the small errors, then you set the stage for a huge one!

Anonymous said...

eeh
http://www.nytimes.com/2006/10/25/business/worldbusiness/25comma.html?ex=1319428800&en=d653f747eb9845b8&ei=5088&partner=rssnyt&emc=rss

coldtusker said...

anon - Pls repost the link coz its doesn't come thru in its entirety or "cut & paste" onto the comments!

coldtusker said...

ke - thanx for the comma!