Market is not a human. Market is only reacting to the good & bad of country's economy, security, politics and other reasons.
If we analyse these above factors ;
1.) Economic growth before bombing was less than 3%.
Maharaja expects the growth will be Negative (-) % now after the bombings and bad security situation.
2.) Foreigners are heavily exiting our bonds. No body wants to invest in such a high risk environment.
3.) Tourism is closed. 70% bookings cancelled. Country's main Income source is LOST now !!!Hotels are beggers now. 150,000 jobs in hotel sector will be affected. Related industries like banks, leasing companies who gave loans will have NPLs immediately. Do not buy finance companies and banks at all !!!
4.) Exchange rates flying again towards 200 mark.
5.) Shangri-La closed operations for 1 year !! All port city investors are now scared to invest in port city too. FDIs which this government never got will not NEVER EVER come to SL. Our leaders proved to the world that there are a failure. World class jokers, CNN.BBC.AlJazeera showed our jokers to the world. How they were informed about threats and failed to take care of people.
Our defense secretary told to foreign media that hotels must take care of themselves !!! Do not think hotels will come back.
6.) Local industry is failing due to above reasons.
Situation is terrible like before 2009 when war was present. We went 10 years back. People are scared to travel in a bus. Scared to walk into a temple/ church.
This is one of the scariest times of our country.
Politics - UNSTABLE as every day
Q: The market has fallen from 7000 levels to 5000 levels, so is it undervalued ?
Remember during war times market was in 2000-3000 levels. So we can expect a continued large scale fall in ASPI.
Q : What is level to buy ?
No one can say in such a high risk situation.
Q : 4700 will it bounce from there ?
Maharaja expect market to definitely reach 4700. Technical bounce can happen from that point, But not market turn.
Q : What is future of CSE ?
Future is Negative 200%, The terrible effect on economy will be seen in 3-4 months time. Company earning will go negative !!! CSE will see negative reports after 6 months time.
Q : Solutions for Investors/traders ?
Wait and see. Never buy a share in this situation.