What is the reason for this downturn?

ashoka1966 · 1 What is the reason for this downturn? Tue Aug 23, 2011 11:32 am

ashoka1966

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After a laps of terrible 3-4 months time , finally we got 3-4 green days.
Again it started bloody red days.
When do we find the green days?????
Actually I am fed up with this market now.
Lot of manipulation, fake rallies….and jump and dump by HNVI….
People found fault with CSE for some regulations. But got to know credit clearance is relaxed.
Is the credit clearance still there ?
What is the reason for this downturn?
Appreciate your views.

sirimevan · 2 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:38 am

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today is t+5 collect much as you can,

ashoka1966 · 3 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:43 am

ashoka1966

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Why..????
How does t+5 fall on today.???
Cannot t+5 be any of the day in the week calculating 5 days from the share purchased day?
Please explain.

hunter · 4 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:43 am

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In my view, market is sill too expensive. The uptrend we noticed from beginning of August is a fake. So a market drop now will help to prevent a total collapse in near future. My estimate is ASI around 6000~6200 will be a healthy level. Anything above that is unsustainable at this stage.
The truth may not be always sweet.
(And I expected someone to give -ve reps here)

Last edited by hunter on Tue Aug 23, 2011 12:03 pm; edited 2 times in total

investor.sl · 5 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:48 am

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avatar · 6 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:55 am

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a bad sentiment overhangs the CSE due to manipulation, changing rules etc..
why would people want to invest in CSE when there are much better propects elsewhere.
only the traders are jumpng in and losing money... that is those who are new and inexperienced..

invest-abc · 7 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:25 pm

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Guys, don't forget the recently published quarterly accounts...most companies reported lower earnings compared to the same period last year.

Slstock · 8 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:32 pm

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hunter wrote:In my view, market is sill too expensive. The uptrend we noticed from beginning of August is a fake. So a market drop now will help to prevent a total collapse in near future. My estimate is ASI around 6000~6200 will be a healthy level. Anything above that is unsustainable at this stage.
The truth may not be always sweet.
(And I expected someone to give -ve reps here)

Yes, overall market PE can be still higher, as there or some sectors and some companies with trading with very high PE as much 100. Some shares are overvalued. Some shares are undervalued. Also there could be exceptional reasons why certain shres trade at a premium while other with very low PE stagnate . It is upto us to find the difference and p ick shares if one is interested in INVESTING for future.

To me this market has good opportunities for good capital gain for the patient and also Hand Grenades which could blow up in you face anytime.

Let us be wise in situations like this.

RockStock · 9 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:43 pm

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hunter wrote:In my view, market is sill too expensive. The uptrend we noticed from beginning of August is a fake. So a market drop now will help to prevent a total collapse in near future. My estimate is ASI around 6000~6200 will be a healthy level. Anything above that is unsustainable at this stage.
The truth may not be always sweet.
(And I expected someone to give -ve reps here)

Now CSE P/E ratio closer to 14, Do you think it should go further down? (Except few craps trading at reiduculous P/E ratios)

Last edited by RockStock on Tue Aug 23, 2011 12:45 pm; edited 1 time in total

hunter · 10 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:44 pm

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slstock, thanks for completing the statement I intended to make.
When 'bad' shares go down they pull down 'good' shares as well.
The good part of a market drop is that we can look for buying good shares at better prices. So we should expect ahead a hunting time for smart investors.

Jana1 · 11 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:53 pm

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hunter wrote:In my view, market is sill too expensive. The uptrend we noticed from beginning of August is a fake. So a market drop now will help to prevent a total collapse in near future. My estimate is ASI around 6000~6200 will be a healthy level. Anything above that is unsustainable at this stage.
The truth may not be always sweet.
(And I expected someone to give -ve reps here)

ya. I think you are right. During last drop I was expecting around 5800. But market warm-up before that. let c

hairai · 12 Re: What is the reason for this downturn? Tue Aug 23, 2011 1:05 pm

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With the announcement of credit relaxation which came on the 16th August, lots of people would have purchased shares on credit. T+5 settlement for them is today. This may be the reason for the market to come down.

Further, I hope market to move up tomorrow since those who purchase tomorrow has to clear on the 1st of Sep.

pushpakumara · 13 Re: What is the reason for this downturn? Tue Aug 23, 2011 1:06 pm

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My opinion is credit issue is still haunting and not resolved 100%.

ashoka1966 · 14 Re: What is the reason for this downturn? Tue Aug 23, 2011 1:23 pm

ashoka1966

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hairai said ;[With the announcement of credit relaxation which came on the 16th August, lots of people would have purchased shares on credit. T+5 settlement for them is today. This may be the reason for the market to come down.

Further, I hope market to move up tomorrow since those who purchase tomorrow has to clear on the 1st of Sep.]

Thank you hairai.I got it.

suja · 15 Re: What is the reason for this downturn? Tue Aug 23, 2011 1:48 pm

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Rock stock, How did you get the PE at 14 please let me know. As I understand still the market PE is close to 20's

RockStock · 16 Re: What is the reason for this downturn? Tue Aug 23, 2011 2:06 pm

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suja wrote:Rock stock, How did you get the PE at 14 please let me know. As I understand still the market PE is close to 20's

Refer the following article by NDB Stock Brokers, The last sentence of the article
http://www.lbr.lk/fullstory.php?nid=20110822143020740

According to CSE daily and weekly report, It's P/E is around 20, It's wrong, They takes ages to update it, sometimes based on earnings of 2009

suja · 17 Re: What is the reason for this downturn? Tue Aug 23, 2011 4:07 pm

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Hey I think this is wrong as hotels and leisure sector is operating at appx 35PE only Renuka city and Amaya lake is below 15PE please check I maybe wrong, hence I feel that their estimate of 14 PE for the market is also incorrect. These are extremely important indicators I dont know why these guys can not get it right.

Genting · 18 Re: What is the reason for this downturn? Tue Aug 23, 2011 5:05 pm

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is T+5 is still there?
With the recent directive, brokers can give credit beyond T+3, provided it meets some criteria. I think T+5 force selling is not there anymore.

FatWolf · 19 Re: What is the reason for this downturn? Tue Aug 23, 2011 5:15 pm

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I thinks its a general cycle.

The time for the wise to collect
The not so wise to dump at a lost and curse the market, sec and their moms

I think its a healthy cyclic drop on profit taking...

econ · 20 Re: What is the reason for this downturn? Tue Aug 23, 2011 5:42 pm

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FatWolf wrote:I thinks its a general cycle.

The time for the wise to collect
The not so wise to dump at a lost and curse the market, sec and their moms

I think its a healthy cyclic drop on profit taking...

what profit do you say?
didnt you buy TAFL and GRAN at 140-150 assuming it will go till 175-200..
what happens to them?

I am having massive losses from so called fundies.

seyon · 21 Re: What is the reason for this downturn? Tue Aug 23, 2011 6:08 pm

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ashoka1966 wrote:After a laps of terrible 3-4 months time , finally we got 3-4 green days.
Again it started bloody red days.
When do we find the green days?????
Actually I am fed up with this market now.
Lot of manipulation, fake rallies….and jump and dump by HNVI….
People found fault with CSE for some regulations. But got to know credit clearance is relaxed.
Is the credit clearance still there ?
What is the reason for this downturn?
Appreciate your views.

It all cause of speculation and manipulation, retailers go behind the rallies and end up with loss without knowing the exit point.

I just give the eg, this also may the reason for the current down tend

Let's say, i am new to CSE and brought Rs.1000, When i bring fund, i saw in the mkt widow LHCL is on the run and bought @ 100 ( our intelligent brokers/ advisers also recommended to buy @ 100)

Following day i saw it came down to Rs.70, Now my portfolio is Rs.700 and my purchasing power is reduced from Rs.1000 to 700, So even if i exit from LHCL and invest in other stock is limited to Rs.700

This simple eg to every retailers ( whether u accept or not) in every day @ current scenario, everyday our purchasing power is been reducing without our knowledge due to fake rallies and not performing fundamentals and blueship stocks.

Last edited by seyon on Tue Aug 23, 2011 6:14 pm; edited 1 time in total

FatWolf · 22 Re: What is the reason for this downturn? Tue Aug 23, 2011 6:13 pm

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econ wrote:

FatWolf wrote:I thinks its a general cycle.

The time for the wise to collect
The not so wise to dump at a lost and curse the market, sec and their moms

I think its a healthy cyclic drop on profit taking...

what profit do you say?
didnt you buy TAFL and GRAN at 140-150 assuming it will go till 175-200..
what happens to them?

I am having massive losses from so called fundies.

I still got those. That doesn't define my portfolio.
I sold some of REEF, CLND, JKH... ta da profits!!!
But there is a lot that im still holding. I bought those for a reason and i know those will go. I don't panic just because i see red... This is cyclic. Market doesn't go green all the way.

And why do you have to sell at loss? Credit, Bad choice? That's your call ney?

hungry · 23 Re: What is the reason for this downturn? Tue Aug 23, 2011 10:21 pm

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ashoka1966 wrote:After a laps of terrible 3-4 months time , finally we got 3-4 green days.
Again it started bloody red days.
When do we find the green days?????
Actually I am fed up with this market now.
Lot of manipulation, fake rallies….and jump and dump by HNVI….
People found fault with CSE for some regulations. But got to know credit clearance is relaxed.
Is the credit clearance still there ?
What is the reason for this downturn?
Appreciate your views.

Timely topic.Welldone ashoka1966.But we see a post from you after a long time.keep it up.

Ben Graham · 24 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:22 pm

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market ASI might come down to 67xx level within 3~4 days time. investor sentiment is going bad as it seems. hope it will bounce back from 6700 (6730~6750) range at least.

Slstock · 25 Re: What is the reason for this downturn? Wed Aug 24, 2011 2:07 am

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Genting wrote:is T+5 is still there?
With the recent directive, brokers can give credit beyond T+3, provided it meets some criteria. I think T+5 force selling is not there anymore.

Technically there should not be any T+5 force selling. Thats also what my Broker said. But.. there is a big but here.. is there?

10 or so brokers does not still qualify for the Liquidy test still. So what do they do until they raise liquid assets . What happens to their client when they buy or already bought on credit. This is a confusing question and can result in the various actions .

CSE is still trying to find its feet after SEC announcement as things are unclear and the credit issue depends on your brokers situation.

Seems there is more Regulator/Broker work to be done to make things precise and smoother.

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What is the reason for this downturn?

1 What is the reason for this downturn? Tue Aug 23, 2011 11:32 am

ashoka1966

2 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:38 am

sirimevan

3 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:43 am

ashoka1966

4 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:43 am

hunter

5 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:48 am

investor.sl

6 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:55 am

avatar

7 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:25 pm

invest-abc

8 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:32 pm

Slstock

9 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:43 pm

RockStock

10 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:44 pm

hunter

11 Re: What is the reason for this downturn? Tue Aug 23, 2011 12:53 pm

Jana1

12 Re: What is the reason for this downturn? Tue Aug 23, 2011 1:05 pm

hairai

13 Re: What is the reason for this downturn? Tue Aug 23, 2011 1:06 pm

pushpakumara

14 Re: What is the reason for this downturn? Tue Aug 23, 2011 1:23 pm

ashoka1966

15 Re: What is the reason for this downturn? Tue Aug 23, 2011 1:48 pm

suja

16 Re: What is the reason for this downturn? Tue Aug 23, 2011 2:06 pm

RockStock

17 Re: What is the reason for this downturn? Tue Aug 23, 2011 4:07 pm

suja

18 Re: What is the reason for this downturn? Tue Aug 23, 2011 5:05 pm

Genting

19 Re: What is the reason for this downturn? Tue Aug 23, 2011 5:15 pm

FatWolf

20 Re: What is the reason for this downturn? Tue Aug 23, 2011 5:42 pm

econ

21 Re: What is the reason for this downturn? Tue Aug 23, 2011 6:08 pm

seyon

22 Re: What is the reason for this downturn? Tue Aug 23, 2011 6:13 pm

FatWolf

23 Re: What is the reason for this downturn? Tue Aug 23, 2011 10:21 pm

hungry

24 Re: What is the reason for this downturn? Tue Aug 23, 2011 11:22 pm

Ben Graham

25 Re: What is the reason for this downturn? Wed Aug 24, 2011 2:07 am

Slstock

26 Re: What is the reason for this downturn?

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