What's wrong with the market???

dilshan · 1 What's wrong with the market??? Fri Oct 07, 2011 12:19 pm

dilshan

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Hi,

What's wrong with the market. It suppose to be green and counters should grow in October. But compared to September it is even further down seems like another 25% is being cleared during October.

Also amazingly the counters ALUF & MFL which went down when others go up are again in a stable position when other counters going down down down.

Not a single uptrend in JKL, TJL, SHL, CIFL, BIL, VONE, WATA, LDEV, LGL.X. These are the ones I experienced and saw certain counters going up.

I would like to know any known reason for this silent down trend.

Roboticfx · 2 Re: What's wrong with the market??? Fri Oct 07, 2011 12:23 pm

Roboticfx

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I'm also looking for an uptrend of CIFL. I think still force selling is done on this share.

RIO · 3 Re: What's wrong with the market??? Fri Oct 07, 2011 12:29 pm

RIO

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Roboticfx wrote:I'm also looking for an uptrend of CIFL. I think still force selling is done on this share.

Force selling ..on a particular share...? what s that..buddy I didn't get it pls explain....! scratch

ninja · 4 Re: What's wrong with the market??? Fri Oct 07, 2011 12:53 pm

ninja

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From yearly this year, the reason for a share to go down has been reasoned 'force selling'. Don't buy this reason.
People normally sell for profit taking, on fear of further loss, opportunity cost or negative future forecast.
Let's put the force selling also into one of the above categories. So we can forget this reason in 2012.

SL.Market · 5 Re: What's wrong with the market??? Fri Oct 07, 2011 12:56 pm

SL.Market

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Not any wrong with market... But the some thing wrong with our investors..

wikum100 · 6 Re: What's wrong with the market??? Fri Oct 07, 2011 1:02 pm

wikum100

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ane no one to manupulate my shares ????manupulates please look at me ......... Sad

Rapaport · 7 Re: What's wrong with the market??? Fri Oct 07, 2011 2:20 pm

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If the market maintains at around 7000 points and with company earnings growing at 30-40% annually we can expect market forward PER to be 14-15X for 2012E and 11-12X 2013E which is on par with other Asian markets.

This will attract new investors and with the growth rate of Sri Lanka maintaining at 8%, many people will be attracted to CSE. However i feel SEC should put in some rules to increase the minimum free float of companies to help reduce price volatility, esp in junk stocks.

Lets hope the expected funds arrive but in my opinion, the market at current 17X is still expensive. More correction/stagnation may occur till company earnings catch up!