Reason for CSE uptrend?

arrowms · 1 Reason for CSE uptrend? Tue Sep 11, 2012 4:52 pm

arrowms

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Can someone explain me the reasons??
Because theres no political, social or economic reasons for uptreand.
Does NGs appoinment effect the market??
Then Who is benefited on this appoinment??
Why people buy speculative shares??
Do people know who sell these shares??
May i invest or not??
May i not invest or invest??

Sidath · 2 Re: Reason for CSE uptrend? Wed Sep 12, 2012 10:24 am

Sidath

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it's called the "Nalaka feel good" effect. Very Happy

Enjoy it while you can.

Chinwi · 3 Re: Reason for CSE uptrend? Wed Sep 12, 2012 10:38 am

Chinwi

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My personal view:

There was a credit crisis due to releasing of excessive credit by some parties including new brokers.
Some people say still we have this problem and this is a credit driven market.

For past few months, foreigners bought over 28 billion LKR worth of shares.

That means a inflow of near 30 billion LKR from outside( foreign buying) to our pockets. If we take away half of this to pay back our loans still 15 billion is there with us. ( Even the other part is now available in banks)

I think people and institutes who had collected enough money waited eagerly see a slight signal to come back to the buying pace.

To suppress this, there were lot of negative talks in the society in web, newspapers spread purposely by certain parties. Now we see even TK was a burden for this ignition - by watching what he says day by day after his removal.

New SEC Chief , a better candidate for growth needed economy , came at a well set moment like this and the rocket ignited itself.

After 15 days of trading now out friends have sold some of their holdings at better rates in this run. What they will do with that money? Finding non-appreciated shares and buying them creating more buying pressure.

Meanwhile, there were lot of studies, analysis carried out during past few months , rates came down to very attractive levels and we got lot of recommendations for buying in some sectors.

Sidath · 4 Re: Reason for CSE uptrend? Wed Sep 12, 2012 11:27 am

Sidath

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Chinwi

I agree with you and on a personal note, I believe the SEC should stop tinkering with the market for a while. But I also believe to bring in long term investors we need to conclude some of these investigations and to put it all behind us. Credibility is the hall mark of any market.

Foreign investors are mercenaries. They came here not because they love us, but because the prices fell to a point it became attractive. Everything has a price. But you don't find them buying stock popular with brokers.

Eventually the credit will be used up, the prices will rise and profit taking will come in and the market will fall. Will they then ask for the head of Nalaka??

Everything that goes up must come down and everything that goes down must come up. There is a cycle to everything. For a cycle to be maintained or to be sustainable, there has to be some fundamental changes either at the SEC or the economy. I have not seen either happen.The appointment of NG is but one change. Depending on your personal opinion, it may or not be a positive thing. That's why I said enjoy it while you can.