Trade Summary Market - 09/07/2012

Jul 09, 2012 (LBT) - The week commenced on a lethargic note with turnover and volumes recording very low figures during the days trading. Both high net worth and retail activity ere very minimal, with renewed interest in selected caps helping the days turnover. The benchmark index shed 3.58 points to close at 4,925 whilst the more liquid MPI closed almost flat at 4,360. Total turnover for the day was over 125mn. (Approximately USD 2.8 million) Total volume traded was 7.5K.

No block trades were witnessed during the day confirming the lethargic sentiments which were prevalent at the bourse. Accumulation was seen on selected counters such as CARS,LOLC and OSEA which contributed material amounts towards the day’s turnover. Index heavy CARS emerged as the top contributor pumping over 19mn trading over 43K shares. LOLC also followed and witnessed over 200,000 shares trading during the day. The counter closed the day almost flat at Rs.37.

Renewed interest was seen on OSEA and RCL during the day as the counters witnessed attractive volumes changing hands. Land & Property sector cap OSEA reached a high of Rs.13.60 as a result of healthy accumulation and closed the day at Rs.13.50 gaining 1.5% for the day. RCL also gained 2.66% to close at Rs.92.70 trading close to 50,000 shares. Further, activity was seen on BUKI,COMB and NDB from Institutions and high net worth’s.

Retail activity was limited once again as most retailers seemed to be on the sidelines. RAL commenced trading after its rights issue and lost 8.51% for the day. The counter closed the day at Rs.4.20 after trading over 760,000 shares. TJL witnessed notable interest during the day as it traded over 350,000 shares. The counter closed 8.30 gaining 2.47%. Further, retail volumes were topped by PAP,GLAS and SFS whilst AUTO emerged as the top gainer on thin trade.
http://lbt.lk/stock-market/movement/2238-lbt-market-monday

Contrary to popular perceptions that the Colombo stock market is infested with insider dealing, manipulation and other malpractices, statistics from the very regulator convey a different picture altogether.

Statistics show that though overall investigations and suspected cases of market/price manipulations have doubled in number, if one compares this with the total number of trades that the Colombo Stock Exchange does for a year, the incidents as a ratio are negligible.

It is from a trade that SEC or CSE detects any suspicion. In that context, consider this analysis.

Possible malpractices in 2011 were only 1:138,484 trades and in 2010 it was 1:116,666 trades. The ratio has in fact dropped last year. A scrutiny of the number of investigations in comparison to the number of trades is also negligible. Last year the number of investigations conducted by the SEC was 18, down marginally from 20 in 2010 but high as against 10 in 2009.

Overall, these numbers imply several take-homes. Comparison vis-à-vis explosion in number of trades between 2009 and 2011 reveal malpractices are negligible hence regulations are an overkill.

On the other hand if market is infested with malpractices, then the SEC has not been able to keep pace with the velocity of such malpractices in terms of detecting or it is not free to enforce laws hence a more independent SEC, greater surveillance and action is required.

Question is how is one trade defined as. 1 share or 100000 shares? Makes a difference does nt it?

Also please mention the source for the below.

Market.Player wrote:Contrary to popular perceptions that the Colombo stock market is infested with insider dealing, manipulation and other malpractices, statistics from the very regulator convey a different picture altogether.

Statistics show that though overall investigations and suspected cases of market/price manipulations have doubled in number, if one compares this with the total number of trades that the Colombo Stock Exchange does for a year, the incidents as a ratio are negligible.

It is from a trade that SEC or CSE detects any suspicion. In that context, consider this analysis.

Possible malpractices in 2011 were only 1:138,484 trades and in 2010 it was 1:116,666 trades. The ratio has in fact dropped last year. A scrutiny of the number of investigations in comparison to the number of trades is also negligible. Last year the number of investigations conducted by the SEC was 18, down marginally from 20 in 2010 but high as against 10 in 2009.

Overall, these numbers imply several take-homes. Comparison vis-à-vis explosion in number of trades between 2009 and 2011 reveal malpractices are negligible hence regulations are an overkill.

On the other hand if market is infested with malpractices, then the SEC has not been able to keep pace with the velocity of such malpractices in terms of detecting or it is not free to enforce laws hence a more independent SEC, greater surveillance and action is required.

slstock wrote:Question is how is one trade defined as. 1 share or 100000 shares? Makes a difference does nt it?

Also please mention the source for the below.

Market.Player wrote:Contrary to popular perceptions that the Colombo stock market is infested with insider dealing, manipulation and other malpractices, statistics from the very regulator convey a different picture altogether.

Statistics show that though overall investigations and suspected cases of market/price manipulations have doubled in number, if one compares this with the total number of trades that the Colombo Stock Exchange does for a year, the incidents as a ratio are negligible.

It is from a trade that SEC or CSE detects any suspicion. In that context, consider this analysis.

Possible malpractices in 2011 were only 1:138,484 trades and in 2010 it was 1:116,666 trades. The ratio has in fact dropped last year. A scrutiny of the number of investigations in comparison to the number of trades is also negligible. Last year the number of investigations conducted by the SEC was 18, down marginally from 20 in 2010 but high as against 10 in 2009.

Overall, these numbers imply several take-homes. Comparison vis-à-vis explosion in number of trades between 2009 and 2011 reveal malpractices are negligible hence regulations are an overkill.

On the other hand if market is infested with malpractices, then the SEC has not been able to keep pace with the velocity of such malpractices in terms of detecting or it is not free to enforce laws hence a more independent SEC, greater surveillance and action is required.

http://forum.srilankaequity.com/t19948-stock-market-full-of-crooks-what-do-sec-and-cse-statistics-show