Whats going on with CSE

hotstock · 1 Whats going on with CSE Mon Feb 14, 2011 2:15 pm

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While ASI trading at 230+ MSI is down -3

And most of the shares down...

Isnt this misleading about ASI..

RockStock · 2 Re: Whats going on with CSE Mon Feb 14, 2011 2:17 pm

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I think when these Carsons Group jumps, ASI moves at a rate

wis · 3 Re: Whats going on with CSE Mon Feb 14, 2011 2:20 pm

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Something should be done about the illiquid stocks.

tubal · 4 Re: Whats going on with CSE Mon Feb 14, 2011 2:22 pm

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Some serious questions need to be asked, but as usual everyone will pretend that nothing happened. I shudder to think where this is going to end.

mark · 5 Re: Whats going on with CSE Mon Feb 14, 2011 2:25 pm

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ya.ya......something should be done to this by CSE.......These stocks are easy to manipulate and small investors loose the chance..........

DK · 6 Re: Whats going on with CSE Mon Feb 14, 2011 2:35 pm

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ASI reflects the entire market, from small liquid stocks to large illiquid stocks. Even if there is a single trade on a large illiquid stock, it will move the market. This is how it happens all over the world. This is why there are sectoral indices published by each market.

salt · 7 Re: Whats going on with CSE Mon Feb 14, 2011 2:35 pm

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mark wrote:ya.ya......something should be done to this by CSE.......These stocks are easy to manipulate and small investors loose the chance..........

Thye should change ASI to free float adjusted market cap method. This is damn misleading. We are down big way while matket is going up massively

salt · 8 Re: Whats going on with CSE Mon Feb 14, 2011 2:36 pm

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DK wrote:ASI reflects the entire market, from small liquid stocks to large illiquid stocks. Even if there is a single trade on a large illiquid stock, it will move the market. This is how it happens all over the world. This is why there are sectoral indices published by each market.

Would you give us examples? S&P, FTSE , MSCI ... are frefloat adjusted market indices

Monster · 9 Re: Whats going on with CSE Mon Feb 14, 2011 2:39 pm

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I am afraid, will there be a market crash if this is continues... Sad

hotstock · 10 Re: Whats going on with CSE Mon Feb 14, 2011 2:53 pm

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Monster wrote:I am afraid, will there be a market crash if this is continues...

exactly 200% agreed.. Rolling Eyes

Rocky · 11 Re: Whats going on with CSE Mon Feb 14, 2011 3:04 pm

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this is the effort made on the peak trading day, come tmrrw and you will see the gradual drop untill it reaches resistance levels.

Except for value stocks like BUKI, CARS, CINV,

tubal · 12 Re: Whats going on with CSE Mon Feb 14, 2011 3:09 pm

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hybrid_OS wrote:this is the effort made on the peak trading day, come tmrrw and you will see the gradual drop untill it reaches resistance levels.

Except for value stocks like BUKI, CARS, CINV,

You mean over valued stocks like .....

smallville · 13 Re: Whats going on with CSE Mon Feb 14, 2011 3:14 pm

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CINV is a value investment and still affordable, few days back I pointed this would run soon..
But today's move is simply too much and just started with this CARS rally.. this is not showing the real potential.. its just a rally..
I'm not sure whether this end up in a price ban today..

DK · 14 Re: Whats going on with CSE Mon Feb 14, 2011 3:21 pm

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Salt, you are correct about free-float method but that is not what I meant. I think I need to clarify my statement.

Even in a free-float method, the index is weighted on the free-float of the shares (i.e. excluding all shares held by the company/directors). However, that does not help the liquidity problem.

If you look at BUKI.N for example (at their annual report for 2010 - http://www.cse.lk/cmt/upload_report_file/456_1275387158958.pdf page:104), you will see that out of 10Mn shares issued, only 237000 has traded the entire year. Shareholding by directorate is very low compared to 10M shares.

Isn't this correct?

invest-abc · 15 Re: Whats going on with CSE Mon Feb 14, 2011 3:27 pm

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This is mainly due to the movement of the shares in the CARS group. However, for most of the investors who purely go by the indices to track the market trend and behavior (specially the retailers who lack sufficient time to analyse the market in detail) might be heading to a major disaster with the misleading indices. Shocked

sham118 · 16 SHAM Mon Feb 14, 2011 3:31 pm

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It is amazing to see ASI overtaking MPI at this rate. What is more then amaze is the CARSON group shares flying over the roof. How on earth all this calculation becomes num.....

But the real concers is the is the MPI goind down let alone ASI going up..... Time to bargain and firm foot on fundamentals.

sapumal · 17 Re: Whats going on with CSE Mon Feb 14, 2011 3:36 pm

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sham118 wrote:It is amazing to see ASI overtaking MPI at this rate. What is more then amaze is the CARSON group shares flying over the roof. How on earth all this calculation becomes num.....

But the real concers is the is the MPI goind down let alone ASI going up..... Time to bargain and firm foot on fundamentals.

MPI consist with most liquid stocks. That all

salt · 18 Re: Whats going on with CSE Mon Feb 14, 2011 4:57 pm

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DK wrote:Salt, you are correct about free-float method but that is not what I meant. I think I need to clarify my statement.

Even in a free-float method, the index is weighted on the free-float of the shares (i.e. excluding all shares held by the company/directors). However, that does not help the liquidity problem.

If you look at BUKI.N for example (at their annual report for 2010 - http://www.cse.lk/cmt/upload_report_file/456_1275387158958.pdf page:104), you will see that out of 10Mn shares issued, only 237000 has traded the entire year. Shareholding by directorate is very low compared to 10M shares.

Isn't this correct?

You are right. But , free float adjustment takes place with regards to shares held by promoters/ controlling shareholders. In Carsons, this parties hold about 95%. This is more serioes in other companies. So , naturally if free flot is adjusted , market cap will comemdown so as the index weight.

DK · 19 Re: Whats going on with CSE Mon Feb 14, 2011 5:37 pm

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' free float adjustment takes place with regards to shares held by promoters/ controlling shareholders.'
- Ok, sorry didn't know that. I thought it was only the stocks held by Directors. How do they identify the interested parties? Just being curious Smile