Whilst the market value of the CSE
increased to 3 trillion rupees is a feat, one must be cautious when reading
anything the CSE puts out.
They are terribly anxious to show their
performance in good light, but just look at the net inflows from overseas year
to date 2014, appalling not even US$250M which is not even pea nuts, which
makes the rise completely speculative lacking in fundamentals.
The road shows that the PDF boast about
have hardly caused a ripple and the figures above corroborate this as money has
been flying out of the market with foreign funds taking profits, rather than replacing
with new funds, except for just two that have invested in this year on a
positive note.
One must remember in such an illiquid
market where speculators are rampant, they do not kill the goose that lays the
golden egg in a declining interest market that under normal circumstances
should see a far greater rise in share prices along with a commensurate
increase in market capitalization.
Let us NOT forget that illiquid shares in
very high market cap companies such as CT (Ceylon Tobacco) and Nestle skew the
market right royally, for no benefit to either the CSE or the Sri Lankan
economy as they repatriate all their profits back to the home base!!!!
Let’s just remind the intelligent
investor that HOGWASH created by the CSE itself is detrimental to the overall
objective of preserving sanity, and intelligent analysis both which are lacking
in the media statement.
When asinine and foolish comments are
made by supposedly respected people who run the CSE, the whole country’s
reputation is put on the line.
I would sincerely ask both Vajira
Kulatilleke the Chairman of the CSE and Rajiva Bandaranayake the CEO, to get a
grip on themselves and stop making a fool of themselves, and try to increase
active new investor participation and a greater level of companies to join the
CSE instead of numbers trying to leave or being gobbled up on consolidation. This
can only stop if they take active steps to stop insider trading, and persuade
shareholders to considerably draw down their controlling shareholdings to give liquidity a boos and widen share-ownership!
There will be no new entrants until that is done
Yeah let's spread some negativity, lies and half truths and try to crash the market because if everything goes right our's and west's "favorite" political party may never gain power again.
ReplyDeleteThe even bigger joke is that the top 18 Companies account for exactly half of the 3 trillion!
ReplyDeleteMuch of it is with large controlling foreign holdings, in Dialog, CT, Nestle, SLT
An indication of the intelligence of those who make these Bombastic statements. They must be day dreaming, as noting can fool the savvy investor, only the gullible ones, that SL hopes to con by this tick!
ReplyDelete