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Sri Lanka Equity Forum » Stock Market Talk » Reason for Market down in last 2 weeks ?

Reason for Market down in last 2 weeks ?

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1Reason for Market down in last 2 weeks ? Empty Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 6:42 pm

BenZ

BenZ
Manager - Equity Analytics
Manager - Equity Analytics
I heard that ASIA Security is cleared their debt of more than 1 billion in last 2 weeks. Is that true ???

Anyone with ASIA Security accounts, please tell us is it true or not ? Did advisers forced cell your shares in last week ?

2Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 7:23 pm

tubal


Vice President - Equity Analytics
Vice President - Equity Analytics
Hardly likely. There was another thread where that genius jayasuria was claiming forced selling is what's driving down the market. I asked him to name the company doing the forced selling and he named a company that doesn't even have many retail clients!!!

Why would any company force sell now? The credit clearing deadline was extended And 1 billion is hardly enough to drive the market down, that's not even half a days turn over.

3Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 7:28 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
@tubal wrote:Hardly likely. There was another thread where that genius jayasuria was claiming forced selling is what's driving down the market. I asked him to name the company doing the forced selling and he named a company that doesn't even have many retail clients!!!

Why would any company force sell now? The credit clearing deadline was extended And 1 billion is hardly enough to drive the market down, that's not even half a days turn over.

friend, when i discuss with the brokers they said now T + 5 is playing major role, and most of the retailers got struck with 2 or 3 shares, so even after disposing this share the main shares also on sales

4Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 7:34 pm

insidertrader


Manager - Equity Analytics
Manager - Equity Analytics
How foolish are these people to buy these overvalued shares on credit last weeks expecting for them to go up in 5 days? They deserve to loose.

5Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 7:40 pm

tubal


Vice President - Equity Analytics
Vice President - Equity Analytics
@Gaja wrote:
@tubal wrote:Hardly likely. There was another thread where that genius jayasuria was claiming forced selling is what's driving down the market. I asked him to name the company doing the forced selling and he named a company that doesn't even have many retail clients!!!

Why would any company force sell now? The credit clearing deadline was extended And 1 billion is hardly enough to drive the market down, that's not even half a days turn over.

friend, when i discuss with the brokers they said now T + 5 is playing major role, and most of the retailers got struck with 2 or 3 shares, so even after disposing this share the main shares also on sales

Again I call that BS Gaja. (not you, your broker is BSing). Please ask him if their company is force selling. I'll bet that the answer is no. I even suggest that you keep a little bit of credit for longer than 5 days just to see what their reaction is. I did that with two broker firms and they didn't even call me.

6Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 7:55 pm

BenZ

BenZ
Manager - Equity Analytics
Manager - Equity Analytics
Further that source said Pan Asia bank which is the banker of Asia security threaten to close the agreement if Asia sec do not clear the debts before end of this month where most of those debts were T+5 dues ...

this is what i heard and i just wanted to know weather any one from here having his/her account with Asia and experienced such kind of forced sell in last week.

7Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 8:27 pm

CSE Today

CSE Today
Manager - Equity Analytics
Manager - Equity Analytics
@tubal wrote:I even suggest that you keep a little bit of credit for longer than 5 days just to see what their reaction is. I did that with two broker firms and they didn't even call me.

True...,still I have to settle xxx K & xxK in two accounts (in two different names) I maintain at same Broker, By now its T+x & T+xx.... still now, I didn't receive any calls ..& today too I called my broker for info on some other stock...even so He didn't asked or hinted me on my Debt...!

"mkt down due to credit clearing" excuse in not valid anymore...!

8Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 8:55 pm

xmart

xmart
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
ASI is at the beginning of 2011. so i am also at the beginning of the year, that is with negligible profit.
even i haven't much credits I drop several counters with some loss. i'm glad to do so because now FLCH @4.3, SAMP@238 and BFL @340 so on. we know that 50% of credit already cleared. so rest of 25% due on Sept 2011, it cannot do a severe harm. since reason is unknown and behind the scene, situation is more dangerous.
I was expecting a sharp upward trend today onward. but it is seemed momentum is not there. as my information sources, lot of retailers lost their half of capitals with PAP, it is almost nearly 3 Bn. it trigger the downturn. then hesitated margin providers also contribute to the downtrend. then it was spread like a cancer.
my best example it me, when counters were coming down i had to sell them to cut my losses,I think most of investors did what i did. now inexperience retailers are in frustrate, investors are in cautious mood then downtrend cannot be stopped.
I'm still walking around and buy small qtys time by time. i think most of you are doing the same. now i'm buying shares which i like to hold even for 10 years with my money.
before buy think twice, some banks and plantations are very attractive now. but even they can drop further.

9Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 8:56 pm

BenZ

BenZ
Manager - Equity Analytics
Manager - Equity Analytics
@ CSE Today, Does your both account with ASIA ?

News said only ASIA cleared debts. not others. I want to clarify 100% clearly. I want to justify that source is true of false. if it is false then i can simply ignore news from that source

10Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 9:00 pm

Aamiable


Vice President - Equity Analytics
Vice President - Equity Analytics
Asia securities say they do not have much credit now. …They have not forced sell even If I go slightly beyond limits…. As far as Pan Asia bank is concerned they gave me a set of forms if required to open an account without any hesitation. ….I said I need to wait and see. I think by now these issues have been solved to a large extent.

They are confident market would perform well in July. …They said they expect some solutions to frequent IPO’s…. I do not know what the others opinion is like. This the opinion of a long standing friend attached to Asia securities.

I think ...most of the issues faced by investors gradually come to an end.

Very Happy Smile Very Happy



11Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 10:28 pm

Leo_pold

Leo_pold
Manager - Equity Analytics
Manager - Equity Analytics
@xmart wrote:ASI is at the beginning of 2011. so i am also at the beginning of the year, that is with negligible profit.
even i haven't much credits I drop several counters with some loss. i'm glad to do so because now FLCH @4.3, SAMP@238 and BFL @340 so on. we know that 50% of credit already cleared. so rest of 25% due on Sept 2011, it cannot do a severe harm. since reason is unknown and behind the scene, situation is more dangerous.
I was expecting a sharp upward trend today onward. but it is seemed momentum is not there. as my information sources, lot of retailers lost their half of capitals with PAP, it is almost nearly 3 Bn. it trigger the downturn. then hesitated margin providers also contribute to the downtrend. then it was spread like a cancer.
my best example it me, when counters were coming down i had to sell them to cut my losses,I think most of investors did what i did. now inexperience retailers are in frustrate, investors are in cautious mood then downtrend cannot be stopped.
I'm still walking around and buy small qtys time by time. i think most of you are doing the same. now i'm buying shares which i like to hold even for 10 years with my money.
before buy think twice, some banks and plantations are very attractive now. but even they can drop further.

Very well said, you deserve + rep for this but unfortunately I cannot give rep since I do not have 100 posts. Anyway I totally agree with you. People have lost money with shares like PAP and FLCH. (I had mixed luck with the two. Got PAP @ 4.40 and sold @ 7.50 while bought FLCH @ 5.00 and sold at a loss @ 4.60, anyway I'm glad I did so) People were so eager to jump in to such shares after they saw the rallies like CLND and CSF. And I think so many again burned their fingers with PMB, ECL and BLUE in recent days.

So as you said the retailers have no money left to buy and has sold their lots at a loss in panic. And the investors and the experienced traders are watching with cash in hand, looking for the market to settle and to move in once more. So that it's not the IPO's or the credit clearances to be blamed. It's purely our own ignorance and greediness that has doomed the market today...

12Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 10:43 pm

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@Leo_pold wrote:
@xmart wrote:ASI is at the beginning of 2011. so i am also at the beginning of the year, that is with negligible profit.
even i haven't much credits I drop several counters with some loss. i'm glad to do so because now FLCH @4.3, SAMP@238 and BFL @340 so on. we know that 50% of credit already cleared. so rest of 25% due on Sept 2011, it cannot do a severe harm. since reason is unknown and behind the scene, situation is more dangerous.
I was expecting a sharp upward trend today onward. but it is seemed momentum is not there. as my information sources, lot of retailers lost their half of capitals with PAP, it is almost nearly 3 Bn. it trigger the downturn. then hesitated margin providers also contribute to the downtrend. then it was spread like a cancer.
my best example it me, when counters were coming down i had to sell them to cut my losses,I think most of investors did what i did. now inexperience retailers are in frustrate, investors are in cautious mood then downtrend cannot be stopped.
I'm still walking around and buy small qtys time by time. i think most of you are doing the same. now i'm buying shares which i like to hold even for 10 years with my money.
before buy think twice, some banks and plantations are very attractive now. but even they can drop further.

Very well said, you deserve + rep for this but unfortunately I cannot give rep since I do not have 100 posts. Anyway I totally agree with you. People have lost money with shares like PAP and FLCH. (I had mixed luck with the two. Got PAP @ 4.40 and sold @ 7.50 while bought FLCH @ 5.00 and sold at a loss @ 4.60, anyway I'm glad I did so) People were so eager to jump in to such shares after they saw the rallies like CLND and CSF. And I think so many again burned their fingers with PMB, ECL and BLUE in recent days.

So as you said the retailers have no money left to buy and has sold their lots at a loss in panic. And the investors and the experienced traders are watching with cash in hand, looking for the market to settle and to move in once more. So that it's not the IPO's or the credit clearances to be blamed. It's purely our own ignorance and greediness that has doomed the market today...

Good points Xmart & Leo_pold

At least now I hope our small retailer stop blaming Regulators. It is mainly our fault.

One interesting thing I noticed that those days many people said we cannt sell shares at a lost. When I said yes they were all against me. Most of them look very silent nowadays. Selling at lost should not be a regular thing but some extreme situations you have no other option.

13Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 10:51 pm

rijayasooriya

rijayasooriya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@tubal wrote:Hardly likely. There was another thread where that genius jayasuria was claiming forced selling is what's driving down the market. I asked him to name the company doing the forced selling and he named a company that doesn't even have many retail clients!!!

Why would any company force sell now? The credit clearing deadline was extended And 1 billion is hardly enough to drive the market down, that's not even half a days turn over.
Oh nice to see u super genius in a different thread.
U seems to know lot about broker companies.
Please do not try to give false information....I did not claim that forced selling IS what is driving down the market...I mean it is one of the main reason....
Please use ur brain before commenting on others' post...

14Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 10:56 pm

ss7097

ss7097
Manager - Equity Analytics
Manager - Equity Analytics
@tubal wrote:
@Gaja wrote:
@tubal wrote:Hardly likely. There was another thread where that genius jayasuria was claiming forced selling is what's driving down the market. I asked him to name the company doing the forced selling and he named a company that doesn't even have many retail clients!!!

Why would any company force sell now? The credit clearing deadline was extended And 1 billion is hardly enough to drive the market down, that's not even half a days turn over.

friend, when i discuss with the brokers they said now T + 5 is playing major role, and most of the retailers got struck with 2 or 3 shares, so even after disposing this share the main shares also on sales

Again I call that BS Gaja. (not you, your broker is BSing). Please ask him if their company is force selling. I'll bet that the answer is no. I even suggest that you keep a little bit of credit for longer than 5 days just to see what their reaction is. I did that with two broker firms and they didn't even call me.

Hi Tubal,

In my case it is different. Asha always call when T+5 and ask to settle. If we're not in a position, ask to sell whatever in Green and settle the payment otherwise they are having problems with their big boss

15Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 10:57 pm

rijayasooriya

rijayasooriya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@tubal wrote:
@Gaja wrote:
@tubal wrote:Hardly likely. There was another thread where that genius jayasuria was claiming forced selling is what's driving down the market. I asked him to name the company doing the forced selling and he named a company that doesn't even have many retail clients!!!

Why would any company force sell now? The credit clearing deadline was extended And 1 billion is hardly enough to drive the market down, that's not even half a days turn over.

friend, when i discuss with the brokers they said now T + 5 is playing major role, and most of the retailers got struck with 2 or 3 shares, so even after disposing this share the main shares also on sales

Again I call that BS Gaja. (not you, your broker is BSing). Please ask him if their company is force selling. I'll bet that the answer is no. I even suggest that you keep a little bit of credit for longer than 5 days just to see what their reaction is. I did that with two broker firms and they didn't even call me.
Please wake up from ur dream and see the fact.
There are lot of broker companies not just two.

16Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 11:00 pm

ss7097

ss7097
Manager - Equity Analytics
Manager - Equity Analytics
@CSE Today wrote:
@tubal wrote:I even suggest that you keep a little bit of credit for longer than 5 days just to see what their reaction is. I did that with two broker firms and they didn't even call me.

True...,still I have to settle xxx K & xxK in two accounts (in two different names) I maintain at same Broker, By now its T+x & T+xx.... still now, I didn't receive any calls ..& today too I called my broker for info on some other stock...even so He didn't asked or hinted me on my Debt...!

"mkt down due to credit clearing" excuse in not valid anymore...!

CSE Today, why don't you mention your broker? it will help others to find a good broker who can help small investors/traders like us.

17Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 11:02 pm

mark

mark
Expert
Expert
@rijayasooriya wrote:
@tubal wrote:Hardly likely. There was another thread where that genius jayasuria was claiming forced selling is what's driving down the market. I asked him to name the company doing the forced selling and he named a company that doesn't even have many retail clients!!!

Why would any company force sell now? The credit clearing deadline was extended And 1 billion is hardly enough to drive the market down, that's not even half a days turn over.
Oh nice to see u super genius in a different thread.
U seems to know lot about broker companies.
Please do not try to give false information....I did not claim that forced selling IS what is driving down the market...I mean it is one of the main reason....
Please use ur brain before commenting on others' post...

hay super genius with 217 posts and -2 net negative reps.....
see your posts history.......
http://forum.srilankaequity.com/spa/rijayasooriya

now think about your posts and other people's posts,then try to comment in proper way.......

@users
see his comments in here
http://forum.srilankaequity.com/t3581p100-east-at-a-discount

this person even dont know about fundamentals when he enter,see following links.....

http://forum.srilankaequity.com/t4445-what-is-p-e-valuation#29910
http://forum.srilankaequity.com/t4441-what-is-earnings-per-share-eps#29895

now this super genius blaming our members who he learnt things from.......hehe,so funny.........wondering who gave you reps Razz




Last edited by mark on Sun Jul 10, 2011 8:50 pm; edited 1 time in total (Reason for editing : added a previous deleted line)

18Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 11:15 pm

rijayasooriya

rijayasooriya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@mark wrote:
@rijayasooriya wrote:
@tubal wrote:Hardly likely. There was another thread where that genius jayasuria was claiming forced selling is what's driving down the market. I asked him to name the company doing the forced selling and he named a company that doesn't even have many retail clients!!!

Why would any company force sell now? The credit clearing deadline was extended And 1 billion is hardly enough to drive the market down, that's not even half a days turn over.
Oh nice to see u super genius in a different thread.
U seems to know lot about broker companies.
Please do not try to give false information....I did not claim that forced selling IS what is driving down the market...I mean it is one of the main reason....
Please use ur brain before commenting on others' post...

hay super genius with 217 posts and -2 net negative reps.....
see your posts history.......
http://forum.srilankaequity.com/spa/rijayasooriya

now think about your posts and other people's posts,then try to comment in proper way.......

@users
see his comments in here
http://forum.srilankaequity.com/t3581p100-east-at-a-discount

this person even dont know about fundamentals when he enter,see following links.....

http://forum.srilankaequity.com/t4445-what-is-p-e-valuation#29910
http://forum.srilankaequity.com/t4441-what-is-earnings-per-share-eps#29895

now this super genius blaming our members who he learnt things from.......hehe,so funny.........wondering who gave you reps Razz


Hi....Sefless friend....Nice to meet u in another thread...
I can see that u are burning with hatred....That is why u can not even see that to whom I have reffered a super genius.....
I am not blaming our form members...
If u think that I am blaming a member why don't u bother to find out those thread,as u have done in the above thread geniusly, inform about me to the admin.....Of course u have power to edit my post...But I know what I have written...

19Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Mon Jun 27, 2011 11:29 pm

SLM


Stock Analytic
Stock Analytic
@ BenZ: My Broker is Asia Security. Last Thursday my adviser (hardly give advices ) asked me to settle my credits before Noon of next day (Friday). I don't know how they chose people who have credits, because one of my friends was also asked to settle his credits but another one was not asked to do so. Furthermore he mentioned that they are going to stick into T+5 rule since they get more pressure.

20Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Tue Jun 28, 2011 12:44 am

kam2011


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
This is how T+5 affect the market. Either SEC should allow brokers to manage their credit with some precautions to prevent any disaster. Otherwise credit sale should be totaly prohibited.Now what happened is people buy on credit seeking price would increase and amount borrowed could be settled shortly.But when that is not happened they will have to sell at a lower price to settle credit. this will lead further to make situation worst.

21Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Tue Jun 28, 2011 1:04 am

insidertrader


Manager - Equity Analytics
Manager - Equity Analytics
@kam2011 wrote: Either SEC should allow brokers to manage their credit with some precautions to prevent any disaster.
This is what got us into this bubble in the first place. If we continue this brokers will allow dumb people to buy shares more and more on credit because they get the fee and the interest. And if the dumb people cannot pay the growing interest they will force sell at the end. No difference. When there's sufficient credit added up the market will crash sharply.

@kam2011 wrote:Otherwise credit sale should be totaly prohibited.Now what happened is people buy on credit seeking price would increase and amount borrowed could be settled shortly.But when that is not happened they will have to sell at a lower price to settle credit. this will lead further to make situation worst.
SEC has generously given us 5 days to make the payment. I think the reason you have that credit is not to speculate that in 5 days the stock will go up. It is to allow the buyer to buy more shares without freezing cash with the broker until a transaction happens. If a person cannot understand this then it's a good thing that dumb people lose the money that they shouldn't deserve.

22Reason for Market down in last 2 weeks ? Empty Re: Reason for Market down in last 2 weeks ? on Tue Jun 28, 2011 8:37 am

CSE Today

CSE Today
Manager - Equity Analytics
Manager - Equity Analytics
@ss7097 wrote:CSE Today, why don't you mention your broker? it will help others to find a good broker who can help small investors/traders like us.

Buddy I'm not sure if they will provide such facilities to all & every new client..I'm with them since 1994 & even traded/invested during the time of War regime... Very Happy


I am not supposed to mentioned the name of the broker coz if , Many Many people complain to their brokers comparing with my Broker firm , then there could be a problem for from SEC... ...it's your turn to guess...my advice to you is - Never Depend on Brokers.....!

Hope you got it...!

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