Does MPI means Manipulation index?

Couple of years ago we strongly believed MPI. MPI was a good index to measure fundamental movement. Now it became meaningless with following new comers...
CLND,East,Greg,PCH...

Most of the fundamentals are out...
Dist,spen,HNB, Royal,LOLC,etc..

Jana1 wrote:Couple of years ago we strongly believed MPI. MPI was a good index to measure fundamental movement. Now it became meaningless with following new comers...
CLND,East,Greg,PCH...

Most of the fundamentals are out...
Dist,spen,HNB, Royal,LOLC,etc..

Jana1, forcefully they are going to move the MPI beyond the ASI, how can they do it with those unmoved FTs, Now we can see clear & cut manipulation from July onwards, Or they are try to get the attraction on S&P. we ? or them ?

But,

Refer what Redbull has said in the related thread about MPI.

http://forum.srilankaequity.com/t19484-27-jun-2012-media-release-mpi-2nd-half-2012

Jana1 wrote:Couple of years ago we strongly believed MPI. MPI was a good index to measure fundamental movement. Now it became meaningless with following new comers...
CLND,East,Greg,PCH...

Most of the fundamentals are out...
Dist,spen,HNB, Royal,LOLC,etc..

More liquid shares are in MPI as far as I know.

there are very few to include ..HVA ,Blue,Reef probably @ next time .. so its completely a Manipulated PI ..

Jana1 wrote:Couple of years ago we strongly believed MPI. MPI was a good index to measure fundamental movement. Now it became meaningless with following new comers...
CLND,East,Greg,PCH...

Most of the fundamentals are out...
Dist,spen,HNB, Royal,LOLC,etc..

Milanka Index represents most liquid stocks in CSE in the preceding six months. Always the list will change in every six months and selection criteria are well defined.

As we all know the shares that were excluded such as Dist, Spen, Hnb, and RCL etc. were very illiquid during last six months. This means investors are lethargic to invest in those companies.

All the new inclusions do have every right to be in the index as they were very liquid in last six months.

ie: PCH most of the time you can buy/sell a reasonably large quantity without significant price movement.

MPI does not mean FUNDERMENTAL SHARES. It always represents the shares majority of the investors like to trade. THE MOST LIQUID SHARES.

It's a tragedy that most of the forum members are not trying to understand the actual fundamentals. They think prestigious shares are with fundamental value. Sadly it's an illusion. There are lots of prestigious shares in CSE that are in unjustifiable values with regards to future earnings potential. Means no fundamental future value. When those shares are in a major index it becomes stagnate distressing the investor community.

Investors should be capable of adjusting their portfolios according to future earnings potential. Don’t follow trailing PE ratios alone. Be DYNAMIC.

hariesha wrote:

Jana1 wrote:Couple of years ago we strongly believed MPI. MPI was a good index to measure fundamental movement. Now it became meaningless with following new comers...
CLND,East,Greg,PCH...

Most of the fundamentals are out...
Dist,spen,HNB, Royal,LOLC,etc..

Milanka Index represents most liquid stocks in CSE in the preceding six months. Always the list will change in every six months and selection criteria are well defined.

As we all know the shares that were excluded such as Dist, Spen, Hnb, and RCL etc. were very illiquid during last six months. This means investors are lethargic to invest in those companies.

All the new inclusions do have every right to be in the index as they were very liquid in last six months.

ie: PCH most of the time you can buy/sell a reasonably large quantity without significant price movement.

MPI does not mean FUNDERMENTAL SHARES. It always represents the shares majority of the investors like to trade. THE MOST LIQUID SHARES.

It's a tragedy that most of the forum members are not trying to understand the actual fundamentals. They think prestigious shares are with fundamental value. Sadly it's an illusion. There are lots of prestigious shares in CSE that are in unjustifiable values with regards to future earnings potential. Means no fundamental future value. When those shares are in a major index it becomes stagnate distressing the investor community.

Investors should be capable of adjusting their portfolios according to future earnings potential. Don’t follow trailing PE ratios alone. Be DYNAMIC.

One of the practically valuable advice.(Not just a text book type advice.)

Milanka Index represents most liquid stocks in CSE in the preceding six months. Always the list will change in every six months and selection criteria are well defined.

As we all know the shares that were excluded such as Dist, Spen, Hnb, and RCL etc. were very illiquid during last six months. This means investors are lethargic to invest in those companies.

All the new inclusions do have every right to be in the index as they were very liquid in last six months.

ie: PCH most of the time you can buy/sell a reasonably large quantity without significant price movement.

MPI does not mean FUNDERMENTAL SHARES. It always represents the shares majority of the investors like to trade. THE MOST LIQUID SHARES.

It's a tragedy that most of the forum members are not trying to understand the actual fundamentals. They think prestigious shares are with fundamental value. Sadly it's an illusion. There are lots of prestigious shares in CSE that are in unjustifiable values with regards to future earnings potential. Means no fundamental future value. When those shares are in a major index it becomes stagnate distressing the investor community.

Investors should be capable of adjusting their portfolios according to future earnings potential. Don’t follow trailing PE ratios alone. Be DYNAMIC.

This is the most valuable advice I came across. Always you have shown the way to go. Thanks a lot for that.

What are we talking LIBOR rate is also manipulated. So do not blow things out of propossion and make this is only a sri lankan issue. Ask HON MP Harsha de silva to chk on LIBOR rate.(as gvmt borrowing paid on top of LIBOR). Allowe market forces to operate with out talk about manipulation.

http://www.bbc.co.uk/news/business-18612279

VISA wrote:What are we talking LIBOR rate is also manipulated. So do not blow things out of propossion and make this is only a sri lankan issue. Ask HON MP Harsha de silva to chk on LIBOR rate.(as gvmt borrowing paid on top of LIBOR). Allowe market forces to operate with out talk about manipulation.

http://www.bbc.co.uk/news/business-18612279

I am not sure how LIBOR rate is manipulated... BBA interest rate is a measure, normally most banks follow that rate as that is much reliable. If LIBOR comeup with manipulated rates then most of the banks, from my memory there is 223 members, will not care LIBOR. As far as I know LIBOR is a avearge rate determined by BBA. Your article talk about their attempt to maipulate the LIBOR rate. They are facing enquiry...How can you compare this LIBOR issue with MPI? In LIBOR, Barclays-The company which tried to manipulate, is 1 in 223. So their level of manipulation has less impact. But our MPI seems more than 30% of manipulation shares....

now we have S & P so it can be considered as blue chip index.. just ignore MPI

Barclays must be mad to pay $450m if they have not maupilated the LIBOR.
PLS SEE WHAT HAPPENING.
DO NOT WHITE WASH BIG SUDDHA FELLOWS. THEY ARE THE BIGGEST ROBBERS

barclays was fined £290m ($450m) after an investigation into claims that several banks manipulated the Libor rate at which they lend to each other.

http://www.bbc.co.uk/news/business-18622264

VISA wrote:Barclays must be mad to pay $450m if they have not maupilated the LIBOR.
PLS SEE WHAT HAPPENING.
DO NOT WHITE WASH BIG SUDDHA FELLOWS. THEY ARE THE BIGGEST ROBBERS

barclays was fined £290m ($450m) after an investigation into claims that several banks manipulated the Libor rate at which they lend to each other.

This is a very difficult truth to digest as most worship them.(I do not say all the suddas are like that.)

VISA wrote:Barclays must be mad to pay $450m if they have not maupilated the LIBOR.
PLS SEE WHAT HAPPENING.
DO NOT WHITE WASH BIG SUDDHA FELLOWS. THEY ARE THE BIGGEST ROBBERS

barclays was fined £290m ($450m) after an investigation into claims that several banks manipulated the Libor rate at which they lend to each other.

http://www.bbc.co.uk/news/business-18622264

I am not criticizing you. But my understanding about LIBOR is different. That is typical measure. However interest rate is driven by demand and supply. If there is no demand at high LIBOR rate, then BBA should reduce their LIBOR themselves. Barclays attempted to manipulate then they paid off. My question is how they benefitted from that?

FSA EXPLANATION


http://www.fsa.gov.uk/library/communication/pr/2012/070.shtml