Market correction next week - Support level 7100

ForeigNer wrote:Most small inverters feared a possible market correction in next two weeks. Experts predict the supporting level will be around 7100 level if not supported will move down to 6800 level.

Facts ;

* Month end Margin settlements,
* Unfavorable macro economic conditions.
* Rising fuel cost,
* Overpriced TILE SECTOR
* Dependency on LOLC share for volume/index movement
* Downward trend of BIL ( most favorite share of retailers )

ForeigNer wrote:Most small investers feared a possible market correction in next two weeks. Experts predict the supporting level will be around 7100 level if not supported will move down to 6800 level.

Facts ;

* Month end Margin settlements,
* Unfavorable macro economic conditions.
* Rising fuel cost,
* Overpriced TILE SECTOR
* Dependency on LOLC share for volume/index movement
* Downward trend of BIL ( most favorite share of retailers )

ForeigNer wrote:Most small investers feared a possible market correction in next two weeks. Experts predict the supporting level will be around 7100 level if not supported will move down to 6800 level.

Facts ;

* Month end Margin settlements,
* Unfavorable macro economic conditions.
* Rising fuel cost,
* Overpriced TILE SECTOR
* Dependency on LOLC share for volume/index movement
* Downward trend of BIL ( most favorite share of retailers )

ForeigNer wrote:Most small investers feared a possible market correction in next two weeks. Experts predict the supporting level will be around 7100 level if not supported will move down to 6800 level.

Facts ;

* Month end Margin settlements,
* Unfavorable macro economic conditions.
* Rising fuel cost,
* Overpriced TILE SECTOR
* Dependency on LOLC share for volume/index movement
* Downward trend of BIL ( most favorite share of retailers )

1. DY is almost the SAVINGS RATE and TOUCHING FD rate
   
   
2. Market PE = 8 (lowest in FRONTIER markets)
   
   
3. Technically it’s a cup and handle 
   
   
4. Local Co. are performing exploring opportunities of C19 and imports cut
   

ONTHEMONEY wrote:

ForeigNer wrote:Most small investers feared a possible market correction in next two weeks. Experts predict the supporting level will be around 7100 level if not supported will move down to 6800 level.

Facts ;

* Month end Margin settlements,
* Unfavorable macro economic conditions.
* Rising fuel cost,
* Overpriced TILE SECTOR
* Dependency on LOLC share for volume/index movement
* Downward trend of BIL ( most favorite share of retailers )

Hi ForeigNer,

I don't agree with your facts. Please see the justification below for your noted facts.

Month end margin settlements is NOT NEW to the market. Most of the brokering houses already cleaned margins if you analyze personally with them.

All CORPORATES have RECORDED HIDTORICAL HIGHEST PROFITS in the current ECONOMIC CLIMATE. Additionally, the Government is planning to repay July debt repayments without any issue. The due value is USD 1.0Bn and SL currently have USD 4.0Bn as reserves and another USD 1.5Bn received from China as a SWAP. The Government is might go to restructure the debt or go for IMF plan which is highly likely. 


Diesel price increased by 6.7%. However, the rising fuel cost is common for all companies listed in CSE. 

Tile Sector is NOT OVERPRICED which is WRONG. Please analyze before making open statements. Currently, TILES and ALUMINIUM sectors have almost 1 YEAR sales paid in ADVANCE where the delivery happens 12 months later. The Import restrictions are NOT LIKELY to be LIFTED for next year given the DEBT REPAYMENTS in the country. All local manufactures EXPANDED PRODUCTION CAPACITIES IDENTIFYING the potential in domestic market driven by import restrictions.

LOLC is naturally a market driver. LOLC is moving up due to the recent HYPER GROWTH and BEST CORPORATE WITH EARNING in SL. Also, LOLC Technologies [85% owned by LOLC] are exploring to supply Graphene as Battery Technology which will be a killer in SL Exports. Globally, battery technology is the next emerging change replacing fuel. 

https://www.lankabusinessonline.com/sri-lanka-seeks-collaboration-on-graphene-applications-with-russian-company/


BIL factor is not a key factor contributing to the overall market. 

Therefore, please be responsible in posting opinions with valid supporting facts. 

As an INVESTOR, I am focusing on BASIC FUNDAMENTALS in a market

Irrespective of daily developments, what is important is the overall strength of market fundamentals and technicals. 

1. DY is almost the SAVINGS RATE and TOUCHING FD rate
   
   
2. Market PE = 8 (lowest in FRONTIER markets)
   
   
3. Technically it’s a cup and handle 
   
   
4. Local Co. are performing exploring opportunities of C19 and imports cut
   

If you follow greats like Warren Buffet, you should on BUY side when everyone is Fearfull. I am BULLISH based on market fundamentals. 

Good Luck 

ForeigNer wrote:Most small investers feared a possible market correction in next two weeks. Experts predict the supporting level will be around 7100 level if not supported will move down to 6800 level.

Facts ;

* Month end Margin settlements,
* Unfavorable macro economic conditions.
* Rising fuel cost,
* Overpriced TILE SECTOR
* Dependency on LOLC share for volume/index movement
* Downward trend of BIL ( most favorite share of retailers )

Poor Panicked Individuals

Mr. X wrote:any idea which shares took the ASI high today during morning hours... ???

Wickyz wrote:Next week profit booking week

ONTHEMONEY wrote:Hi all,

There is NO CRISIS in SL right now. Everyone can realize it ONCE THE JULY 2021 DEBT PAYMENT MADE (USD 1.0Bn) without any issue.

What everyone needs to UNDERSTAND is that SL lost nearly USD 4.0Bn foreign inflow due to TOURISM INDUSTRY DISASTER spooked because of C19. That led to current FX demand/supply issue and further fueled by vaccine imports.

What the GOVERNMENT is planning to do is;

1. Manage FX issue with IMPORT CONTROL as much as possible while growing EXPORTS 
2. Vaccinate in full by September and START TOURISM where the hotel workers given priority for vaccines(already directions issued)
3. Obtain SWAP facilities to bridge USD required as a ST measure 
4. Government would go to IMF as the last option 

Therefore, as investors I see the present situation creates a GOLDEN OPPORTUNITY to BUY as some investors might panic without understanding the situation. The great investor Warren Buffet made BILLIONS in 2008 during subprime mortgage crisis 

Good Luck 

https://www.google.com/amp/s/theweek.com/articles/459166/how-warren-buffett-made-10-billion-during-financial-crisis%3famp