Why Sudden fall in Colombo Stocks?

MarketSIRA · 1 Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 10:50 am

MarketSIRA

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My Analysis is everyone is trying to find funds to apply for Free Lanka Capital IPO it is yet to be announced from Today...People are bullish about Free Lanka Capital..

Given the number of IPO's that gonna be housed at Colombo Stock Exchange...we will witness these type of down trends in the market once in every three to four days.

The analysis is whether people who recently entered the market will be upset on latest down fall trends and will they exit the market...

Given all these reasons I think SEC might have to consider another avenue to create cash for retailers to find cash for IPOs.

What ever said and done Colombo Stock Exchange is mainly driven from Retail Day Traders...

Open for Discussions...Please Comment alien

chamith · 2 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 10:54 am

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Sirawata.....
Why da markt dwn?? confused

swan03 · 3 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:03 am

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chamith wrote:Sirawata.....
Why da markt dwn??

Im also wondering abt that.

salt · 4 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:11 am

salt

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FREE LANKA CAPITAL offers 300 million shares. It is very difficult to gain from those low value shares with such a large no of shares outstanding.

It will not be a hot stock like UBank or SFIN

praba11 · 5 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:18 am

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MarketSIRA wrote:My Analysis is everyone is trying to find funds to apply for Free Lanka Capital IPO it is yet to be announced from Today...People are bullish about Free Lanka Capital..

soo funy... Very Happy

bcoz of free lanka market going down... lol!

salt -- agree with u. farao

bullrun · 6 : Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:51 am

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Big fish are happy and wait for the best opportunity. Clever retailers are collecting slowly. Panic new comers are sinking.

Take breath and wait and see. It will be green soon.

chamith · 7 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:54 am

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most prob on tomorrow.... Very Happy

UKboy · 8 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 12:46 pm

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[quote="bullrun"]Big fish are happy and wait for the best opportunity. Clever retailers are collecting slowly. Panic new comers are sinking.

Very True.
But personelly I dont think it will become green anytime soon. This correction is a long overdue one.

wis · 9 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 1:53 pm

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Do you really think this profit taking ( Smile

word used by brokers for red days) is due to IPOs?

xmart · 10 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 2:07 pm

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wis wrote:Do you really think this profit taking ( word used by brokers for red days) is due to IPOs?

nop. long waited correction. market is in bear phase. i will not buy anything. but I have to hold SEYB.X @46 and PAP @4.30. with big unrealized losses.

Academic · 11 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 2:20 pm

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As I have repeatedly mentioned on the forum, the market is heading to a deep, deep end. However, I'm still not sure of the turning date. Anyway it would be on or before 1st April, 2011.

Oppose to some posts here, I don't expect this red would drag beyond March.

antxster · 12 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 6:45 pm

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lol. wtf

tubal · 13 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:07 pm

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antxster wrote:lol. wtf

As a self confessed newbie, you should be more respectful to academic who has proven himself to be a good analyst. He is one of the handful of people who called the market top accurately, which is probably the point at which you started buying.

antxster · 14 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:13 pm

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Hmm.

1. I am not refering to "academic"
2. I did not quote his text.
3. What makes you think that i'm refering to him?
4. I laugh because I agreed with praba11 (Post #5)

Chill tubal!

antxster · 15 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:14 pm

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Thanks for your -minus reputation as well. ^^

tubal · 16 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:24 pm

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antxster wrote:Thanks for your -minus reputation as well. ^^

Your minus reputation is not from me (I am out of votes for the day, but you can expect one from me early tommorow morning).

mark · 17 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:28 pm

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mark · 18 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:36 pm

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swan03 wrote:

chamith wrote:Sirawata.....
Why da markt dwn??

Im also wondering abt that.

if say sirawatama...................
guys do you like a market which rise rapidly?............which have a never ending up runs?..................
don't you expecting a correction?
market should have everything,this is the time where check your patience..
so be patient,don't be a panic seller.........
whatever goes down will come to it's previous stages...........defa Smile

Berryfund · 19 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 10:26 pm

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Academic wrote:As I have repeatedly mentioned on the forum, the market is heading to a deep, deep end. However, I'm still not sure of the turning date. Anyway it would be on or before 1st April, 2011.

Oppose to some posts here, I don't expect this red would drag beyond March.

Why we don't talk about following SEC Circular. According to the information avaliable most of the the Margin Provider's exposure was 10 times the value of its net capital. Simply SEC has taken control measures.

Ref: SEC/LEG/11/02/41
CIRCULAR NO: 02 12011
21'' February 2011
To: All Registered Market Intermediaries under the categcrrysf Margin Pro~vi.d ers ~
DIRECTIVE UNDER SECTION 13 (c) OF THE SECURITIES AND EXCHANGE COMMISSION
OF SRI LANKA ACT NO. 36 OF 1987 (AS AMENDED1

The Securities and Exchange Commission of Sri Lanka (SEC) hereby directs all registered Margin
Providers, otherthan those registered Margin Providers also licenced and regulated by the Central
Bank of Sri Lanka as follows;

"The Margin Provider's exposure against the aggregate value of the loans extended as margin
should at no time exceed 4 times the value of its net capital."

The above directive shall not be applicable to registered Margin Providers licenced and regulated by the Central Bank of Sri Lanka. Such institutions shall abide by the requirements stipulated by the Central Bank of Sri Lanka on credit exposure, which is determined according to the capital adequacy requirements imposed by the Central Bank of Sri Lanka.

This directive shall be effective from 1'' March 2011.

Please note that Rule 05. ( Cool

of the Specific Rules for Margin Providers under Rules for All Market
Intermediaries of the SEC stands amended as per the above directive.

Academic · 20 Re: Why Sudden fall in Colombo Stocks? Wed Mar 09, 2011 8:16 am

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tubal wrote:

antxster wrote:lol. wtf

As a self confessed newbie, you should be more respectful to academic who has proven himself to be a good analyst. He is one of the handful of people who called the market top accurately, which is probably the point at which you started buying.

antxster wrote:Hmm.

1. I am not refering to "academic"
2. I did not quote his text.
3. What makes you think that i'm refering to him?
4. I laugh because I agreed with praba11 (Post #5)

Chill tubal!

It is just an opinion. I respect your freedom to express. One correct prediction doesn't prove that I'm an expert!

manike100 · 21 Re: Why Sudden fall in Colombo Stocks? Wed Mar 09, 2011 7:23 pm

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I am also having the same problem.
According to my investigation, there are several.

1) Overall P/E ratio is bit higher. (At present the Price Earning ratio (P/E ratio) is high as it is calculated based results of March last year. However, the analysts expect that the P/E ratio will be below 20 by March.)
2) CSE is getting more and more IPOs in this year (SEC believe they can control the Bullish behavior of the market for some far, with this IPOs)
3) Middle East crisis.
a. Since this will directly impact with the oil price, it will be a big negative point for investors.
b. Considerable amount of export business are related with Middle East.
4) Most of the investors have taken a huge profit with last set of rally’s

I assume due to the above reasons, foreign investors are trying to play the safe game. So they start selling.

When they are selling, prices can go down some amount.

With this down tern, local panic sellers start their game. This will mess up everything.

And also with the credit clearance policy this will get more complicated. Due to this policy and the market down turn, the strong investors who do not get panic, have to get panic unfortunately pale

So no idea until when it continues.

tubal · 22 Re: Why Sudden fall in Colombo Stocks? Wed Mar 09, 2011 7:25 pm

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manike100 wrote:I am also having the same problem.
According to my investigation, there are several.

1) Overall P/E ratio is bit higher. (At present the Price Earning ratio (P/E ratio) is high as it is calculated based results of March last year. However, the analysts expect that the P/E ratio will be below 20 by March.)
2) CSE is getting more and more IPOs in this year (SEC believe they can control the Bullish behavior of the market for some far, with this IPOs)
3) Middle East crisis.
a. Since this will directly impact with the oil price, it will be a big negative point for investors.
b. Considerable amount of export business are related with Middle East.
4) Most of the investors have taken a huge profit with last set of rally’s

I assume due to the above reasons, foreign investors are trying to play the safe game. So they start selling.

When they are selling, prices can go down some amount.

With this down tern, local panic sellers start their game. This will mess up everything.

And also with the credit clearance policy this will get more complicated. Due to this policy and the market down turn, the strong investors who do not get panic, have to get panic unfortunately

So no idea until when it continues.

Good arguments until you veered off the track with that comment about foreign selling. They have been selling for about an year without a break.

pradeepk · 23 Volatility Thu Mar 10, 2011 10:49 am

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..............Volatility is one of the best phenomenon without which stock markets will loose its charm. It is the tendency of fluctuation of market indices over a period of time; more is the fluctuation, higher is the volatility. The ups and downs of stock prices is what that adds spice to the market behaviour. This see-sawing effect has its own implications, both good and bad. Good, because prudent investors taking advantage buy on dips and sell on highs for profit booking.....(http://www.sharemarketbasics.com)

What do you think a prudent investor would do when his portfolio tripples????
Do you think big fishes doing at this situ.just sitting and waiting there, how many crossings, and big collections noticed during these days.

>>What goes round comes round very much applies here<

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Why Sudden fall in Colombo Stocks?

1 Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 10:50 am

MarketSIRA

2 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 10:54 am

chamith

3 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:03 am

swan03

4 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:11 am

salt

5 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:18 am

praba11

6 : Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:51 am

bullrun

7 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 11:54 am

chamith

8 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 12:46 pm

UKboy

9 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 1:53 pm

wis

10 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 2:07 pm

xmart

11 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 2:20 pm

Academic

12 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 6:45 pm

antxster

13 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:07 pm

tubal

14 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:13 pm

antxster

15 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:14 pm

antxster

16 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:24 pm

tubal

17 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:28 pm

mark

18 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 7:36 pm

mark

19 Re: Why Sudden fall in Colombo Stocks? Tue Mar 08, 2011 10:26 pm

Berryfund

20 Re: Why Sudden fall in Colombo Stocks? Wed Mar 09, 2011 8:16 am

Academic

21 Re: Why Sudden fall in Colombo Stocks? Wed Mar 09, 2011 7:23 pm

manike100

22 Re: Why Sudden fall in Colombo Stocks? Wed Mar 09, 2011 7:25 pm

tubal

23 Volatility Thu Mar 10, 2011 10:49 am

pradeepk

24 Re: Why Sudden fall in Colombo Stocks?

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