Daily Mirror (Sri Lanka)
BY CHANNA FERNANDOPULLE
Excessive speculation caused indices to crash- Report
Excessive speculative trading is one of the main causes for the decline in the All Share Price Index (ASPI) and Milanka Price Index (MPI), despite the similarities between the performance of both indices and global capital markets, according to a report from NDB Stockbrokers Research.
“The increase in excessive speculative investing witnessed over the last 2 years which reached dizzy heights in August and September 2011 destabilized the market by creating a substantial sum of both realized and unrealized losses while driving away fundamentals based investors” the report stated. See page 22