Below 6000 !

dhanurrox · 26 Re: Below 6000 ! Wed Feb 19, 2014 8:42 pm

dhanurrox

Vice President - Equity Analytics

Posts : 1158
Join date : 2011-08-28

Breaking 6000 was damn hard,coming below 6000 very easy,What technicals apply here?Amazing market.

ADP · 27 Re: Below 6000 ! Thu Feb 20, 2014 12:05 am

ADP

Manager - Equity Analytics

Posts : 106
Join date : 2011-07-09

@Rapaport
What you say with regard to Mihin, CEB, CPC are true these are a drain on the economy and it could be argued that the money could be better spent.

But lets look at the effect of these on the market. These three have been a black hole for many years and in 2012 contributed to the Balance of Payment crisis in 2012. Today the situation has changed we have ended 2013 with US$7.2bn in foreign reserves. Even though there are funds exiting srilanka now it is not in the scale you see it other emerging markets. The exchange rate seem to be holding up and Central Bank has enough reserves to defend the rupee if needed. Can it be sustained I don't know.

I don't think lending rates do come down as fast as they go up, so it may take some more time for the polices put in place to be reflected in the banking system.

The market ran up around 450 points in just over 30 days and I hope/think it is a correction amplified by the UN HR scare.

Tell me one thing if this HR issue was taken out of the picture would you be so pessimistic on the market?

Rapaport · 28 Re: Below 6000 ! Thu Feb 20, 2014 3:19 am

Rapaport

Assistant Vice President - Equity Analytics

Posts : 681
Join date : 2011-02-01

I frankly believe friendly nations will bail us out of this UN issue... Not one bit concerned

Yes we have $7.2 billion reserves and this is partly built up with foreign debt!!!

CEB, Mihin, CPC, Sri Lankan have been a thorn in the past but the losses now are exceeding previous losses by staggering amounts, thats what is disturbing...

Market will go up no doubt, but govt must also get its act together..

Cheers!

knockknobbler · 29 Re: Below 6000 ! Thu Feb 20, 2014 4:26 pm

knockknobbler

Manager - Equity Analytics

Posts : 178
Join date : 2013-02-21

ADP wrote:
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Tell me one thing if this HR issue was taken out of the picture would you be so pessimistic on the market?

Interesting Question !!
Thought a little bit. This is what came to my mind.

I think HR means Human Rights. So, if the RIGHTS of HUMAN beings are taken out of the picture, what's point in talking about markets ?