Market closed after 38 seconds of trading!

Sri Lanka Stock Market (CSE) reopens after 51 days!
S&P has fallen more than 10% within first 33 seconds of trading and market is halted by CSE according to new rules!

10% down ... තප්පර තිස් අටයි

10% down ... තප්පර තිස් අටයි

This is why I said Market should not be opened. Now who benefited!. Only 24mn turnover.

අදට ගනුදෙනු ඉවරයි.
වෙළෙඳපොළ වසා දමයි

This is absurd. This is building more pressure on the market. People are getting angry now. This should be open without any circuit breaker.

Madness.

What a joke

So market is closed for the day with Rs. 24,892,096 turnover.....

@Quibit wrote:This is why I said Market should not be opened. Now who benefited!. Only 24mn turnover.

This is the result of long term market close. Look at today all foreign markets they remain open during the last one month without Adhoc close-downs. now all markets going up, even Indian sensex market. But due to prolonged close down all foreign investors lost their faith in our market. The result is this. even now we should keep open. otherwise, we can be kept close forever.

@Quibit wrote:This is why I said Market should not be opened. Now who benefited!. Only 24mn turnover.

I think it happened because the market was closed all this time. 

who want to trust a market which doesn't allow us to trade whenever we want? No one

@cseguide wrote:

@Quibit wrote:This is why I said Market should not be opened. Now who benefited!. Only 24mn turnover.

This is the result of long term market close. Look at today all foreign markets they remain open during the last one month without Adhoc close-downs. now all markets going up, even Indian sensex market. But due to prolonged close down all foreign investors lost their faith in our market. The result is this. even now we should keep open. otherwise, we can be kept close forever.

Agreed. Now that market was opened, it should be kept opened.
CSE should reopen and let free market forces decide where market want to settle.

CSE should not have intervened by creating new circuit breakers.
CSE all should be blamed for not implementing short selling, which would have created a cushion for this fall.

Market Closures in South Asia Leave ‘Bitter Taste’ for Foreign Funds
Fri, May 8, 2020, 09:12 am SL Time, ColomboPage News Desk, Sri Lanka.

May 08 (Bloomberg) Sri Lanka’s stock market is set to resume trading Monday after its longest ever shut down aimed at combating the pandemic, while the Bangladesh bourse has yet to flag a reopening. 
Foreign funds, however, may have lost interest during the prolonged wait.
“It leaves a bitter taste,” Hasnain Malik, head of equity strategy at Tellimer in Dubai said of the Bangladesh bourse shutdown. “Many foreigners will be put off by the ad hoc closure of the market for such a long period.”
Sri Lanka and Bangladesh exchanges are among a handful of global stock markets that halted trading in March after the coronavirus contagion shut down economies and hammered equities. Investors in these markets missed out on a worldwide rebound in equities in April. The island nation’s stock gauge is down more than 20% from its most recent peak in December, while Bangladesh equities last traded on March 25 and are marking their longest closure since 1976.
The seven-week “closure of the Colombo Stock Exchange will likely affect short term sentiment toward Sri Lankan equities once markets do re-open as selling pressure would have built up,” said Ruchir Desai, a fund manager at Asia Frontier Capital Ltd. in Hong Kong. Some foreign investors had raised their concerns about the extended closure via intermediaries to the regulator, Desai said.
Curbs on imports of non-essential goods and capital outflows were also imposed in March to preserve foreign exchange as the rupee dropped to consecutive record lows. Sri Lanka had registered 797 coronavirus infections and nine deaths, while Bangladesh had 12,425 cases and 186 fatalities, according to data compiled by John Hopkins University as of May 7.
‘Black Swan Risk’
“The Covid-19 pandemic is the essence of a black swan risk,” said Mattias Martinsson, chief investment officer of Tundra Fonder AB in Stockholm. “There will be a certain understanding of extreme action. In addition, investors in smaller emerging markets and frontier markets are aware that these markets can be more fragile during times like these.”
Tundra plans to retain its holding in Bangladesh pharmaceutical shares when trading resumes as valuations are “attractive,” Martinsson said.
Still, extended closures of stock markets would have “long lasting consequences”, which could result in stocks “getting kicked out from global indexes like MSCI,” said Thomas Hugger, chief executive officer at Hong Kong-based Asia Frontier Capital, which has equity assets in frontier markets including Sri Lanka and Bangladesh.
MSCI Inc. won’t implement any changes resulting from its May 2020 Semi-Annual Index Review for Sri Lanka and Bangladesh securities in MSCI country or composite indexes that they’re a component of due to the prolonged exchange closures, it said in a statement dated May 6. Changes not implemented would be deferred to its August quarterly review.
In Sri Lanka, foreign investors haven’t been net equity buyers since last year’s third quarter. Overseas funds, which account for about a third of market volume according to the market regulator, have sold net $28.8 million of local equities so far this year. The Colombo All-Share Index is at its lowest level in almost a decade and trades at a price earnings multiple of 8.41.
The island’s curfew restrictions would have led to “lots of practical problems,” especially post-transactions, if the market hadn’t been shuttered, said Dimuthu Abeyesekera, chief executive officer at stock brokerage Asha Securities Ltd. in Colombo.
The Securities and Exchange Commission of Sri Lanka “fully understands the impact and possible consequences of the inability to re-open the stock market and the need to recommence market activities at the earliest,” the regulator said in an emailed response to queries.
Efforts to cushion a selloff on reopening with three tiers of circuit breakers replacing one at the Sri Lankan market’s reopening may help curb a further collapse in stocks in the face of excessive selling, said Kavinda Perera, head of research at Asia Securities Pvt. in Colombo, while Tallimer’s Malik doesn’t expect a rush to withdraw from Bangladesh.
“It will be a gradual, long-lasting withdrawal by foreigners,” said Tellimer’s Malik. “Perhaps, a persistent overhang for the market.”
2020 Bloomberg L.P.


Read More:: Bloomberg (Source)

how come other countries open their market and not CSE? I think this is not because of corona but because of very bad economic mismanagement and fear.

who is responsible for Colombo stock exchange? finance minister?

අනෙක් රටවල මාර්කට් ඇරලා තියන්නත් අපේ එක වහලා තියන්න හේතුව කොරෝනා නෙමෙයි, අතිශය දුර්වල ආර්ථික කලමනාකරනය හා බය තමයි හේතු.

This creates unwanted pressure and negative sentiments. Foreign investors will loose the interest and trust. Worst ever decision made by authorities. What kind of a jokes is this?

පරණ විදිහට තිබ්බනං හොඳ නැද්ද... අර කාලයක් තිබුණේ.... company එකක share price එක 10% වඩා අඩු හෝ වැඩි වෙන විට එම company එකේ පමණක් trade නවත්තන එක

@Quibit wrote:

@cseguide wrote:

@Quibit wrote:This is why I said Market should not be opened. Now who benefited!. Only 24mn turnover.

This is the result of long term market close. Look at today all foreign markets they remain open during the last one month without Adhoc close-downs. now all markets going up, even Indian sensex market. But due to prolonged close down all foreign investors lost their faith in our market. The result is this. even now we should keep open. otherwise, we can be kept close forever.

Agreed. Now that market was opened, it should be kept opened.
CSE should reopen and let free market forces decide where market want to settle.

CSE should not have intervened by creating new circuit breakers.
CSE all should be blamed for not implementing short selling, which would have created a cushion for this fall.

agreed . If this market breakers will remain we can expect similar results in all 4 remaining days of this week. result is 50% market fall within one week and even after that the sellers will be their with lots of selling pressure. so we can expect this situation untill end of this month and thir after the force selling really will be started. Even one will like to buy shares this market will not allow him to do so due to excessive selling pressure. very pathotic condition when we think about our own market and whole economy.

@nigma wrote:පරණ විදිහට තිබ්බනං හොඳ නැද්ද... අර කාලයක් තිබුණේ.... company එකක share price එක 10% වඩා අඩු හෝ වැඩි වෙන විට එම company එකේ පමණක් trade නවත්තන එක

Good thinking. 
NIGMA you must get into the board of cse. 
Allow market to find its own price level.

List companies that traded only 1 share during the short trading session. What was the purpose of pre open trading 1 share at March 20th Prices?

@Quibit wrote:List companies that traded only 1 share during the short trading session. What was the purpose of pre open trading 1 share at March 20th Prices?

Well its because of this circuit breaker imposed and the market closing in 38 seconds. Now the biggest race is to get ahead of the queue first and get out of the market. Trade volumes don't matter. It shows only within the 38 seconds only there is little you can do. By the time I was trying to amend my sell order, the system had stopped taking orders.

It's about volumes of the share, and people are waiting in line to just sell it off now. Like it said, its about getting in line first.

Trade volume is basically one order that was executed within 38 seconds. The share volume shows how many were sold before the circuit breakers were triggered.

This scenario is basically going in line in the bank to withdraw your money standing in 1m distance, and one fellow withdraws a large sum and the bank says, okay we are closed. Please get out.


Pathetic. SEC executives are incompetent and they are strings are being pulled by some big fund managers and company executives only. 

I believe the market has to be punished for severe wrongdoings. If the SEC and the force of nature can punish us, the markets will naturally punish for stupidity.

And the circuit breaker should have been imposed on the ASPI overall, not just one small index. Sigh! This is building more frustration among the investment community. I don't think anyone other than certain individuals are happy about this scenario. SEC and governments have killed the market over the past few years. No one properly made money from the stock market after 2011. Other countries have been performing because of their country doing well overall. It's a reflection. Time to get out of this hole for good.

market will stabilise around 2000-2500 points ! regulators trying to delay the process by a few days or a week ! but it will cause panic ! might dip even further around to 1500 ! if so everyone will get a rupee on a thousand invested ! so investers are in panic mode to sell ,plus selling is halted by regulators come this friday .....disaster

open the market without circuit breakers or close it till general election.