Colombo Stocks in Uncertainty

Colombo Stocks in Uncertainty

The Colombo stock markets was acting as worlds no 1 market after the 2009 end of the war. inverters were over confident about Sri Lanka and was investing in our stocks. as usual the government was keen about this and introduces more and more regulation and tried to get maximum use of the situation by introducing continuous IPOs to the market.As a result of too much regulation and trying to get the too much advantage of the situation , finally the stock market has become a mess and its continuously going down  day by day.. so the investors are loosing money day by day....

once the ASI was reaching the 8000 and at this moment 19.11.2011 its more closer to the 6000 mark and expected to decline more. As can be seen in the graph the more liquid stocks has fallen sharply than ASI cause people has taken their money out selling the stocks  and the other stocks has fallen less as its not easy to sell them without incurring a big loss. How ever what ever happens the brokers and the government is getting their commissions for the buying or selling so they are still happy and only the poor investors are suffering.

Although the stock market showed a bull trend on last two days  its not possible to expect that we are in the bottom of the decline now. there was no real backing trend or momentum to take the drive forward and hence it is expected  the ASI to decline more in the next week also. so the investors better be careful on buying new shares  as none knows whether we have reach the bottom or not....