galway_blow_in
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was just wondering why so little stock is traded ?
perhaps a silly question but volume seems remarkably low for the residential one in particular ?
Well its alot more "liquid" than property itself remember, you don't find out daily the value of your house because its never listed. The irish property market wasn't too liquid in 2009,10 and 11 ,there was a whilethere where some property could not even get a bid
Maybe most of the investors are "Buy & Hold"?
After all, if you buy a house you don't generally sell it the next year to buy another
Only if there's a massive sell off.Always heard it said that very low volume traded stocks can fall in value an awful lot
Only if there's a massive sell off.
>60% of the free float of IRES is held by institutional investors - funds, pensions, etc. There have been days when individual funds have purchased >1m shares, so there's obviously plenty of shares exchanging hands when the price is right.
I doubt the volumes differ too much from UK REITs with a similar market cap.
It's certainly not something that has ever crossed my mind as a concern, and Irish REITs make up a material share if my non pension assets.
What stock are you talking about?
As an example -Microsoft stock trades less than 1% on average every day on the Nasdaq, Total the same in Paris, Llyods Bank UK ave t/o 237M out of a float of 67B shares
I think we are allowed to discuss the ins and outs of investing eg low stock turnover and use various companies to explain the how and why but not to promote or otherwise the stock in question.
Many stocks have a low turnover ratio - but whether this is a problem or not depends on your order size
If the order book of a stock is such that your order would take the first ten positions to fill, then obviously your order will move the price of the stock.
If you order is small compared to the order book, then there is little risk of affecting the price one way or another.
The last few times I looked the order book for IRES was 50-60,000 on both sides with a spread of maybe € 1 in total so an order for 10-20,000 shares would have been filled relatively quickly and painlessly
If you are in the market for 200,000 or 300,000 shares then it is a different question
But the same can be said of all stocks.
As REIT go, IRES is quite small. The biggest European REITs are valued at € 10 Billion and above. IRES market cap is € 850M
Are you using limit orders?i was buying 20 thousand and still found it difficult going
Are you using limit orders?
i wasnt buying tranches of 200,000 , i was buying 20 thousand and still found it difficult going , perhaps i just happened to try it on a particularly thin volume day ?
ive a hundred thousand euro in both the residential REIT and the Commercial REIT that operates in Dublin
the residential one is up over 15% since i bought , the commercial is flat
True, but I would argue that with REIT's you expect the majority of your return to come from the Dividends. Not from price appreciation.The trouble for Irish investors, is that ETFs are heavily taxed compared to REITs themselves
Good luck with the Investment Galimh, but I would be nervous about taking so much country specific risk.
Especially as Ireland is a small country, with some of Europe's highest property prices combined with some of Europe's lowest property densities.
I think a REIT ETF like IPRP = iShares European Property Yield UCITS ETF
Gives you good diversification with no currency risk.
In 2007 I was almost fully invested in Irish Banks and Irish Constructions stocks, so I'm a zealot when it comes to diversification now!
Unless you're a Day Trader, Trading Volume is irrelevant.
Anyway, all ETF's have market makers, meaning, in the extremely unlikely event that you you couldn't find a buyer or seller to take the opposite side of your trade, the ETF will step in, take the opposite side of your trade and then either create or destroy ETF shares by buying/selling the underlying securities.
In relation to IPRP - If you check it out on justeft.com, it's traded on 7 different stock exchanges in 3 different currencies, with a fund size of almost 1.6 Billion with a B Euro. Over all the exchanges, It's trading volume will be far greater than the Irish REITs.