what happened to foreigners

2010-Feb-15
Foreign Purchases : Rs. 180.18 million
Foreign Sales : Rs. 1,264.19 million
Net Foreign Inflow/ (Outflow) : Rs.(1,084.01) million.
are they sense the correction?

I think they have MARKED SL as it were doged ears. (Over sold)
They only come in for the rock bottom priced shares which they will never see in the future.

Will you invest in another country direct with no advice / assistance?
How can you react to sudden changes and volatility of market due to every whim and fancy.
Since they cannot react fast and get less info, they prefer not to lose their money.

hybrid_OS wrote:I think they have MARKED SL as it were doged ears. (Over sold)
They only come in for the rock bottom priced shares which they will never see in the future.

Will you invest in another country direct with no advice / assistance?
How can you react to sudden changes and volatility of market due to every whim and fancy.
Since they cannot react fast and get less info, they prefer not to lose their money.

ya agree on you,now market is overbought......do you remember when the market is bleeding and before the SEC going to amend the margin rule,foreigners start to buy and made a net foreign inflow....now it is on the other way.........i think they buy when we sell and they sell when we buy,i fell it's better to prepare for the correction...........i may be wrong........

Unlike us looking from outside they will heavily depend on indicators such as RSI. We can't expect much foreign participation at current RSI levels.

invest-abc wrote:Unlike us looking from outside they will heavily depend on indicators such as RSI. We can't expect much foreign participation at current RSI levels.

i think the better indicator are stochastic,EMA and MACD.....more than RSI..........

Important thing is that the foreigners look for liquid stocks like JKH, DIAL, HNB, COMB. They don't prefer illiquid stocks like BUKI, CARS, CFLB (large caps but less float) or medium and small caps (many of the rest.) They want shares that can be easily bought and sold.

with our current liquidity levels and the PE's of the big caps these people can't invest in many places.

invest-abc wrote:Unlike us looking from outside they will heavily depend on indicators such as RSI. We can't expect much foreign participation at current RSI levels.

Dear invest - abc

What is RSI.How can it calculate.

RSI – Relative Strength Index; This basically measures the magnitude of price movements (up or down). Markets which have had more upside movements have a higher RSI than markets which have had more downside movements. This is measured on a scale of 0 to 100 (as a standard – high level is above 70 and low level is below 30). Currently CSE - RSI is at the upper limit of 70. Any market or particular share will not always keep on moving in one direction, there will be ups and downs. Hence, RSI could be used as an effective tool to give clues on market corrections. But we should not look only at RSI in isolation (if so it will be misleading).

RSI = 100 – (100/(1+RS))
RS = Average Gain / Average Loss (take a 14 day period)

The RSI was 89.9 on Friday before falling to 70 on Monday. Interestingly RSI was 92.4 on Oct 1. Make of it what you will.

from my experiance the CSE can operate for long stretces of time with the RSI between 70 and 90. it's when the thing crosses 90 and stays there for a week or so that things start getting dangerous. If you ask me the index with see a couple of RED days now with heavy profit taking from several counters but there are still many good counters that can go up further on the back of some good results and excellent macro economic prospects.

tubal wrote:The RSI was 89.9 on Friday before falling to 70 on Monday. Interestingly RSI was 92.4 on Oct 1. Make of it what you will.

ohh my god. Can we expect an announcement from SEC ?

invest-abc wrote:RSI – Relative Strength Index; This basically measures the magnitude of price movements (up or down). Markets which have had more upside movements have a higher RSI than markets which have had more downside movements. This is measured on a scale of 0 to 100 (as a standard – high level is above 70 and low level is below 30). Currently CSE - RSI is at the upper limit of 70. Any market or particular share will not always keep on moving in one direction, there will be ups and downs. Hence, RSI could be used as an effective tool to give clues on market corrections. But we should not look only at RSI in isolation (if so it will be misleading).

RSI = 100 – (100/(1+RS))
RS = Average Gain / Average Loss (take a 14 day period)

Hi invest-abs
Many thnx for your explanation.If you don't mind can you expain this calcutation through example(some stock)

dimithri wrote:

invest-abc wrote:RSI – Relative Strength Index; This basically measures the magnitude of price movements (up or down). Markets which have had more upside movements have a higher RSI than markets which have had more downside movements. This is measured on a scale of 0 to 100 (as a standard – high level is above 70 and low level is below 30). Currently CSE - RSI is at the upper limit of 70. Any market or particular share will not always keep on moving in one direction, there will be ups and downs. Hence, RSI could be used as an effective tool to give clues on market corrections. But we should not look only at RSI in isolation (if so it will be misleading).

RSI = 100 – (100/(1+RS))
RS = Average Gain / Average Loss (take a 14 day period)

Hi invest-abs
Many thnx for your explanation.If you don't mind can you expain this calcutation through example(some stock)

calculations are available on bloomberg website......
http://www.bloomberg.com/apps/quote?ticker=BFL:SL
go to this link and see below,there will be a box named indicators...there is some indicators such as stochastic and RSI.........
And if you want details of another company,go to search box and type the stock symbol..........you will get them............

Most foreign institutional portfolio investors tend to place greater weightage on macro fundamentals and stock valuations rather than technicals and charts.

And given their focus on liquidity, most of them tend to look at only the larger cap and liquid companies. For example, even though SLTL is a large market cap company, its very poor share liquidity would rule it out of most foreign investors consideration.

Foreigners also will compare valuations of stocks in Sri Lanka that meet their liquidity and fundamental/valuation criteria with other companies throughout the region and perhaps even other emerging markets around the world. And it may well be the case that there are superior opportunities in markets in India, Middle East, Africa and Latin America for them.

Some global investors have even recently shifted funds away from emerging markets into more developed markets such as USA, due to inflation and commodity price fears.

@cse.alpha: Excellent insight...!

I am waiting for the day when Sri Lankan residents can actually invest in equity markets overseas - e.g. in Eastern Europe and Latin America, where valuations (relative to growth rates) are more attractive than at home.
This was one of the budget proposals, wasn't it? Do you know whether the Controller of Exchange has issued necessary instructions to the authorized Foreign Exchange dealers in this regard?

mark wrote:

dimithri wrote:

invest-abc wrote:RSI – Relative Strength Index; This basically measures the magnitude of price movements (up or down). Markets which have had more upside movements have a higher RSI than markets which have had more downside movements. This is measured on a scale of 0 to 100 (as a standard – high level is above 70 and low level is below 30). Currently CSE - RSI is at the upper limit of 70. Any market or particular share will not always keep on moving in one direction, there will be ups and downs. Hence, RSI could be used as an effective tool to give clues on market corrections. But we should not look only at RSI in isolation (if so it will be misleading).

RSI = 100 – (100/(1+RS))
RS = Average Gain / Average Loss (take a 14 day period)

Hi invest-abs
Many thnx for your explanation.If you don't mind can you expain this calcutation through example(some stock)

calculations are available on bloomberg website......
http://www.bloomberg.com/apps/quote?ticker=BFL:SL
go to this link and see below,there will be a box named indicators...there is some indicators such as stochastic and RSI.........
And if you want details of another company,go to search box and type the stock symbol..........you will get them............

Hi Mark
Many thnx,One more ques.What is MACD?How to read it from the chart.

mark wrote:2010-Feb-15
Foreign Purchases : Rs. 180.18 million
Foreign Sales : Rs. 1,264.19 million
Net Foreign Inflow/ (Outflow) : Rs.(1,084.01) million.
are they sense the correction?

Foreign founds already made a fortune from CSE. This is their time to exit from an extremely overheated market.
Also we dont have huge liquid stocks ( except JKH). But JKH still have a quite high P/E value

dimithri wrote:

mark wrote:

dimithri wrote:

invest-abc wrote:RSI – Relative Strength Index; This basically measures the magnitude of price movements (up or down). Markets which have had more upside movements have a higher RSI than markets which have had more downside movements. This is measured on a scale of 0 to 100 (as a standard – high level is above 70 and low level is below 30). Currently CSE - RSI is at the upper limit of 70. Any market or particular share will not always keep on moving in one direction, there will be ups and downs. Hence, RSI could be used as an effective tool to give clues on market corrections. But we should not look only at RSI in isolation (if so it will be misleading).

RSI = 100 – (100/(1+RS))
RS = Average Gain / Average Loss (take a 14 day period)

Hi invest-abs
Many thnx for your explanation.If you don't mind can you expain this calcutation through example(some stock)

calculations are available on bloomberg website......
http://www.bloomberg.com/apps/quote?ticker=BFL:SL
go to this link and see below,there will be a box named indicators...there is some indicators such as stochastic and RSI.........
And if you want details of another company,go to search box and type the stock symbol..........you will get them............

Hi Mark
Many thnx,One more ques.What is MACD?How to read it from the chart.

bro,everything in the internet,i learnt many more things from internet......investopedia is a good web to learn stock market stuff.....
http://www.investopedia.com/terms/m/macd.asp
just take a sometime and analyse the way charts and stock price behave.......
i also don't know much.......