Affects of news in stock market
We all know market moves because of an imbalance, caused by various situations and conditions. Due to an importance of a news market adjusts, known as volatility. There’re various ways how volatility takes its direction in each market condition.
Positive news - Raises the bull run but not always.
Negative news – Short term/ temporary drop in market. This mostly happens due to panic selling and some profit takings. However, its last for a short period as, buyers (investors) collect and even sellers (swing traders) also collect with the dip.
Postive news - Short term/ temporary up in market. This mostly happens due to some’re rush to buy ( As same as panic selling). However, its last for a short period, as sellers lined up and sells when market up.
Negative news- Raises bear but not always.
Ranging market is a balanced market. That balanced is need to be break by a un balanced force. Hence, depends on the importance of the news market will take the direction/trend.
Positive news- Starts bulls run.
Negative news- Starts bear.
So, comparing with CSE, market is bull. Due to some named bad news market drops, and its hope to be a tempory drop. And it proved by foreign bullish sentiment as they were the net buyers.
In current condition in SL, whether there’s a actual political uncertainty ? Its better to find out and decide.
What do we known by a political uncertainty affects stock market. Affects stock market I wrote it again.
Stock market mainly drives by economical factors. Hence, any political uncertainty affects on economy is named to be a political uncertainty, can affect on stock market.
For example those’re political uncertainties in stock market,
- Armed conflicts.
- Civil war/ guerilla attacks conditions.
- Organized crimes.
- A Govt. which doesn’t obey law, order and justice.
Apart from above.
- Weak economical policies of a ruling party. (Business averse/ deflation/hyper inflation policies)
So, comparing with SL situation there’s no a considerable political uncertainty which could have big impact on market. The only political uncertainty is the uncertainty for UPFA and MR. And that uncertainty cannot be impact on economy. And it’s the most important thing. Good govern is needed for a better economy.
For the CSE manipulation the retail/small investors also responsible. Their panic buying/selling is open the door for manipulators. And we shouldn’t open a door for them.