Dull Market

investcsesl · 1 Dull Market Wed Jul 08, 2015 1:47 pm

investcsesl

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Current market is like a ball forcefully pushed down in the water. Ball wants to come out. But not allowed.

Can't see major activities in the market. No sooner it has to bring back to the original position. Better to keep an eye on value counters.

VALUEPICK · 2 Re: Dull Market Wed Jul 08, 2015 3:23 pm

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When compare with other Asian markets such as Chinese, Japanese and Hong Kong markets, frontier markets such as Pakistan, Sri-Lanka, emerging market India are facing well. In short South Asian markets have outperformed other Asian markets during this turbulent time. Asian markets should rebound strongly in the coming weeks once we see end of volatility and when markets players try to ignore Greek crisis gradually. One year return for Chinese market is over 50%. Naturally there will be sell off. One year return in Philippine and Sri-Lanka is around 6%. Therefore, Sri-Lanka market has more potential to go up due to attractive value and future prospects for some industries. Few intelligent investors in China took position in Food and beverages stocks before others and before the big sell off. However still some investors bullish on Chinese stocks and according to Goldman Sachs Large-cap CSI 300 Index will rally 27 per cent over the next 12 months as government support measures boost investor confidence and monetary easing spurs economic growth.

Actually easing money policy implemented by global Central banks will create more demand for stocks although there will be pull back, volatility and sell off time to time.

On top of that demand for stocks will be there due to falling oil and gold prices. Gold has become no more safe heaven asset class now.

We should see further sell off in gold, oil, grain next. These types of thing bring opportunities for others. Those countries such as frontier markets which depend on Oil and other raw materials will benefit and it will help them to improve their balance of payments. Even global consumers will benefit and their purchasing power will improve. They will create demand for consumer items. Some global companies also will benefit over others.

If AEL go below Rs.20, SHL go below Rs.13, and then there will be more buyers. I don’t think they will go below that level. We need to identify some bases. We don’t see big selling in some attractive listed companies. We need to identify next base for JKH as well. Overall there will be opportunity in blue chips as well due to current slow down in the market. Dull market also creates opportunity for intelligent investors.

samaritan · 3 Re: Dull Market Thu Jul 09, 2015 10:48 am

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I do not understand why VP picked on two stocks in particular to state that if they go below certain price level that there will be more buyers.

In a similar vein could have stated if JKH go below 150 or SDB go below 125 there will be more buyers.

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