It's Ninja Lesson time.
I am not sure if you have heard of the quote before
"Amateurs open the market, but professionals close it".
In short term trading, closing prices are more important than opening prices. It tells your the force behind the price movement and whether the price is weak or strong.
Who sets the opening price? Usually it will be people who have read the news (such as results or news announcement) the night before and then put in their orders early in the morning before market opens.
Who sets the closing prices? Usually, it will be the professionals or market players who determine how and where the prices should close. They have their reasons for wanting to close the prices at a certain level and they usually come into the market nearer to its closing time. Which is why sometimes you see a spike in volume after 4pm for the Singapore market and you can even see some stocks closing 2-3 bids higher than the last traded price between 5 to 5.05pm. This is just one example.
Some examples of "professionals" who set the closing prices.
Case study 1 - business owners who have pledged their shares for loan.
Case study 2 - Fund managers who buy the shares near the close of the market. The more obvious ones are found guilty and the more subtle ones get away. :-P
Case study 3 - Fund manager who window dress.
Examples of other types of instruments besides stocks and shares - Oil price is rigged. LIBOR is rigged. Gold price is rigged. hahaha
I have shown you all the 'negative' examples but you can probably get the idea as to why closing prices are more important than opening prices.
On a more positive note, it can also mean that the stock is gaining a lot of attention and fund managers and retail investors alike are piling into the counter. Probably this can help explain the rise in Far East Hospitality today? :)