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Now the IPOs are over. Remaining (CIFL) is a minor one. People who got burned with overpriced IPOs will concentrate only in secondary market in the future.
Those companies who intent to list in the Colombo bourse and who want to make rights issues, will think twice when pricing the share issues in the future. Further the government has already announced that Air Lanka Catering, Insurance Corp., Litro Gas are not listing, at least for the next six months.
So, I think market will gradually settle down. We saw yesterday that the selling pressure on SHL and VONE is over and they are on the move. There was some demand for GREG also. Other shares also will get active in the coming weeks. Main thing is investors shouldn't participate in panic selling. It will only provide big players, much needed opportunity to grab those. Think about the, poor guys who sold SHL on Tuesday at a massive loss? Guys who collected those shares? They got nearly a 40% return in less than 24hrs.
I think there should be some regulatory involvement also. As lot of IPOs and introductions came in some steps should be taken to create liquidity in the market.
Relaxing the credit rulings is must. Though there were some relaxations announced in the last month, brokers didn't follow those. May be they don't want to follow ad hoc and temporary relaxations. Allowing credit according to broker's capital, as in major markets is a good thing. Regulator can monitor broker companies as in the case of other financial institutions.
Further steps should be taken to bring more capital into the market, by encouraging people to invest in the market. Central bank already hinted that they will reduce interest rates further in the coming month which is a good sign.
So, it is my belief the agony is over. Open for discussion.
Those companies who intent to list in the Colombo bourse and who want to make rights issues, will think twice when pricing the share issues in the future. Further the government has already announced that Air Lanka Catering, Insurance Corp., Litro Gas are not listing, at least for the next six months.
So, I think market will gradually settle down. We saw yesterday that the selling pressure on SHL and VONE is over and they are on the move. There was some demand for GREG also. Other shares also will get active in the coming weeks. Main thing is investors shouldn't participate in panic selling. It will only provide big players, much needed opportunity to grab those. Think about the, poor guys who sold SHL on Tuesday at a massive loss? Guys who collected those shares? They got nearly a 40% return in less than 24hrs.
I think there should be some regulatory involvement also. As lot of IPOs and introductions came in some steps should be taken to create liquidity in the market.
Relaxing the credit rulings is must. Though there were some relaxations announced in the last month, brokers didn't follow those. May be they don't want to follow ad hoc and temporary relaxations. Allowing credit according to broker's capital, as in major markets is a good thing. Regulator can monitor broker companies as in the case of other financial institutions.
Further steps should be taken to bring more capital into the market, by encouraging people to invest in the market. Central bank already hinted that they will reduce interest rates further in the coming month which is a good sign.
So, it is my belief the agony is over. Open for discussion.
