some brokers’ debts are in the billions of rupees

“More dip could hurt the market further as investors’ portfolio value will decline and brokers will compelled to sell shares to cover debts, and some brokers’ debts are in the billions of rupees,” a market analyst told Reuters on condition of anonymity.

http://www.ft.lk/2011/03/16/six-senses%E2%80%99-regional-hq-to-list-on-cse/

i don't have money to buy..many intelligent players will enter in end of this month........we can expect a more dip...........will recover in april.........

duke wrote:“More dip could hurt the market further as investors’ portfolio value will decline and brokers will compelled to sell shares to cover debts, and some brokers’ debts are in the billions of rupees,” a market analyst told Reuters on condition of anonymity.

http://www.ft.lk/2011/03/16/six-senses%E2%80%99-regional-hq-to-list-on-cse/

Market was going up mostly by retail activity. If this is correct, retailers as well as some institutional investors largely depended on broker's funding.

Due to this issue when the market is falling, from where on earth the funds for mammoth 50 odd IPOs/rights/warrant conversions/introductions will come? There is a systemic error

now retail investors should be careful of the market being artificially pushed up to dump the debt to more suckers. some counters are very famous for that

Some of the people posting here seems to have no clue about the normal retail investors debt they had before this year! ( Sorry)
Almost all active retail investors have 0 credit from the December as it has been renewed when they buy and sell this year! Only the few big guns might actually have some credit to clear from last December maybe like What happened with ASHO!

Funny when ever I don't agree or show a diffrent view I get negative rep not for the posts i'm doing currently but for posts I have made like 3-4 pages back

Rajitha, what you say may be logical.

But why do you think the shares accross the board were falling like in a bottomless pit on thin volumes. If forced selling is not happening, what is the fun of selling at a much discounted prices, sometimes at loss. Essentially those are not institutional investors who were selling but retail lots.

It cannot be only the T+5 case, as the period in red was too long. It cannot be explained as a pure profit taking too, when many fundamentally sound stocks have gone to pre-sept.10 levels.

We need to think

anu wrote:Rajitha, what you say may be logical.

But why do you think the shares accross the board were falling like in a bottomless pit on thin volumes. If forced selling is not happening, what is the fun of selling at a much discounted prices, sometimes at loss. Essentially those are not institutional investors who were selling but retail lots.

It cannot be only the T+5 case, as the period in red was too long. It cannot be explained as a pure profit taking too, when many fundamentally sound stocks have gone to pre-sept.10 levels.

We need to think

Yes think first! What drives the CSE ? Its certainly not good PE or PBV or growth . (How can you define some of the CARS shares that under perform going up then and rights trading above share price?) Its the anticipation and forums + news papers talking about the huge credit clearing that is said to happen at the end of this month! Also funny thin about T+5 is some brokers did not follow it and they were forced to few days ago! Also when you buy on credit you have to clear it now no matter how low the price is! Some like me even keep extending the small amount of credit I had buying low and selling high for few weeks now but finally sold them at a loss few days back!

Did you ask your brokers BTW how much month credit clearing he has to do ? Please go ask him that first and come here and let me know than maybe type speculations! ( Unless thats your intention) For me all my brokers have 0 credit to clear by end of the month as they all have been wiped out already.

I think people are just aping the december sentiments here, about retail credit clearance. I doubt there is a lot of retail credit left over. As rajitha said most people are in a new credit cycle.

Rajitha wrote:

anu wrote:Rajitha, what you say may be logical.

But why do you think the shares accross the board were falling like in a bottomless pit on thin volumes. If forced selling is not happening, what is the fun of selling at a much discounted prices, sometimes at loss. Essentially those are not institutional investors who were selling but retail lots.

It cannot be only the T+5 case, as the period in red was too long. It cannot be explained as a pure profit taking too, when many fundamentally sound stocks have gone to pre-sept.10 levels.

We need to think

Yes think first! What drives the CSE ? Its certainly not good PE or PBV or growth . (How can you define some of the CARS shares that under perform going up then and rights trading above share price?) Its the anticipation and forums + news papers talking about the huge credit clearing that is said to happen at the end of this month! Also funny thin about T+5 is some brokers did not follow it and they were forced to few days ago! Also when you buy on credit you have to clear it now no matter how low the price is! Some like me even keep extending the small amount of credit I had buying low and selling high for few weeks now but finally sold them at a loss few days back!

Did you ask your brokers BTW how much month credit clearing he has to do ? Please go ask him that first and come here and let me know than maybe type speculations! ( Unless thats your intention) For me all my brokers have 0 credit to clear by end of the month as they all have been wiped out already.

What I understand from your post is that:

1. There is no credit clearance on account of retail investors. It is only institutional.

2. Current market correction is not prompted by retailers selling, it is rather intitutional

3. institutions are involved in selling small lots like 100 to 1000 - may be just for the fun of it.

4. Market is perfectly ok and that guys like me are posting things to upset it.

This is perfectly the utopian thinking about the market.

I leave it at that. Lets face the reality. Good luck

It's retail selling alright. But that doesn't have to be retail credit clearance. It can be T+5. what a lot of people don't realize is how T+5 effects can compound into multiple waves of selling. The other thing is people aren't buying, some of us are waiting for the right time and selling under the assumption that the market hasn't bottomed out. For the longest time since Feb 50% of my money has been lying around, I'm not even talking credit here. It's only three days ago that i re-entered into RICH. But sold a lot of JINS a week before. I also sold some BFL last week & the weeks before & LCEY last week. So selling doesn't necessarily have to be credit clearance.

mono wrote:It's retail selling alright. But that doesn't have to be retail credit clearance. It can be T+5. what a lot of people don't realize is how T+5 effects can compound into multiple waves of selling. The other thing is people aren't buying, some of us are waiting for the right time and selling under the assumption that the market hasn't bottomed out. For the longest time since Feb 50% of my money has been lying around, I'm not even talking credit here. It's only three days ago that i re-entered into RICH. But sold a lot of JINS a week before. I also sold some BFL last week & the weeks before & LCEY last week. So selling doesn't necessarily have to be credit clearance.

Well said mono. I felt some thing when the market was pushed by WAPO and other illiquid shares to the peak. I predicted the market should go down for the market correction and credit clearance. I sold around 50% shares on right time. Now I am collecting slowly. Yesterday I collected BFL and GRAN. Today I collected HAYC.

Guys, there is credit to be cleared. My broker says the amount is about 20 billion. While everyone keeps talking about the T+5, the ground reality is that it hasn't been strictly implemented by all brokers. Some have but some have not.

Don't also forget that purchases made before 31/12/2010 are not covered by this T+5 rule. I remember how some people at investnow were gleefully urging others to buy before the dec 31 deadline. I think a lot of people have done exactly that. To be quite frank, I did too but I sold off all that stuff in February.

What's your brokerage. My guys are saying they are ok.

anu wrote:

What I understand from your post is that:

1. There is no credit clearance on account of retail investors. It is only institutional.

2. Current market correction is not prompted by retailers selling, it is rather intitutional

3. institutions are involved in selling small lots like 100 to 1000 - may be just for the fun of it.

4. Market is perfectly ok and that guys like me are posting things to upset it.

This is perfectly the utopian thinking about the market.

I leave it at that. Lets face the reality. Good luck

If thats what you understood from what I wrote more than even once then you have some problem with the understanding of the English language mate!
Ps:- well said mono& tubal+ rep

mono wrote:I think people are just aping the december sentiments here, about retail credit clearance. I doubt there is a lot of retail credit left over. As rajitha said most people are in a new credit cycle.

Mine says they are OK too. So I asked a different question: "how much credit do think is left to be cleared at other companies?" and got that answer!

Why not try that with your broker as well.

tubal wrote:

mono wrote:I think people are just aping the december sentiments here, about retail credit clearance. I doubt there is a lot of retail credit left over. As rajitha said most people are in a new credit cycle.

Mine says they are OK too. So I asked a different question: "how much credit do think is left to be cleared at other companies?" and got that answer!

Why not try that with your broker as well.

could it be it's not me it's the dog like thing.

tubal wrote:

mono wrote:I think people are just aping the december sentiments here, about retail credit clearance. I doubt there is a lot of retail credit left over. As rajitha said most people are in a new credit cycle.

Mine says they are OK too. So I asked a different question: "how much credit do think is left to be cleared at other companies?" and got that answer!

Why not try that with your broker as well.

Yes as I said if not for few big guns that has been inactive almost all retailers and active traders credit for the past year has been already cleared! Some people can't even be bothered to ask even their broker and start saying hypothesis and trying to prove them because they heard a rumor or some one else told them!
So ANU how much December credit does your brokers have to settle that you keep urging they have ?

Oh damn! I quoted the wrong reply from Mono. My last post was in reply to mono's question about who my broker is.

So let me reiterate - there is credit to be cleared. My broker says there isn't any at this house but there is plenty of credit in other places amounting to 20 billion. If you ask your own broker, you will probably hear something similar.

Thanks tubal. That is exactly what I meant.

If this 20bn is only institutional outstanding, there is no reason for small investors to sell at a much lower levels. So T+5 clearing, causing this mayhem is not logical.

Rajitha: Though I am poor in my english, not so poor to understand the context of your writing and comprehend what you mean. Thanks for reminding of my poor language skills. Thanks buddy....!!!

anu wrote:Thanks tubal. That is exactly what I meant.

If this 20bn is only institutional outstanding, there is no reason for small investors to sell at a much lower levels. So T+5 clearing, causing this mayhem is not logical.

that's nonsense. Some of us have stop losses when they get hit we sell, for example I've sold over 10 mn in the last couple of weeks. And I carry no debts. there is something called momentum to the market and it works both ways. When some people start selling it triggers waves of selling. this gets compounded when people are not willing to commit to buy back again.

mono wrote:

anu wrote:Thanks tubal. That is exactly what I meant.

If this 20bn is only institutional outstanding, there is no reason for small investors to sell at a much lower levels. So T+5 clearing, causing this mayhem is not logical.

that's nonsense. Some of us have stop losses when they get hit we sell, for example I've sold over 10 mn in the last couple of weeks. And I carry no debts. there is something called momentum to the market and it works both ways. When some people start selling it triggers waves of selling. this gets compounded when people are not willing to commit to buy back again.

Following is a post by you few weeks back. Is it consistent?

psst.....



you know if you ask me there might not be a credit crunch in March. a lot of the credit could have been easily cleared off these 1 & 1/2 months. That might also explain why some of these large caps are sluggish. a lot of break out are breaking down because of credit clearing. HHL being the most recent

http://forum.srilankaequity.com/t657-today-market

Academic wrote:

mono wrote:

anu wrote:Thanks tubal. That is exactly what I meant.

If this 20bn is only institutional outstanding, there is no reason for small investors to sell at a much lower levels. So T+5 clearing, causing this mayhem is not logical.

that's nonsense. Some of us have stop losses when they get hit we sell, for example I've sold over 10 mn in the last couple of weeks. And I carry no debts. there is something called momentum to the market and it works both ways. When some people start selling it triggers waves of selling. this gets compounded when people are not willing to commit to buy back again.

Following is a post by you few weeks back. Is it consistent?

psst.....



you know if you ask me there might not be a credit crunch in March. a lot of the credit could have been easily cleared off these 1 & 1/2 months. That might also explain why some of these large caps are sluggish. a lot of break out are breaking down because of credit clearing. HHL being the most recent

http://forum.srilankaequity.com/t657-today-market

Why is it inconsistent.

mono wrote:I think people are just aping the december sentiments here, about retail credit clearance. I doubt there is a lot of retail credit left over. As rajitha said most people are in a new credit cycle.

People say many things when it down. Yes, nobody knows exact reason.
Combination of all those factors should be driving the market down. What is more inportant to undertand , at which point will it tiugger the turn? Is it 7,000, or 6,750 or 6,500 or less than this ...

This T + 5 issue i asked in the another post yesterday on Looks like collection started?