Friday, August 22, 2014

Market Turmoil in this week (16-21 August 2014)

Rajesh Sharma

1. Market clearing process has been going on. The BT factor (not that of ours' - small investors but of big players/some brokers) is in full action. May be, the clearing process is beneficial for long term market health. This was the main reason behind blocking CDS by Big players/some brokers. This clearing helps to remove the final hurdle. Now, the brokers also have completed the bank guarantee procedure and connectivity.
However, buy time means generally red NEPSE may continue till tomorrow or even in initial days of next week due to continuing BT factor and profit booking.

The following part is written and posted Today
 
2. Yes, we were not accurate in market prediction. However, it is a complex process and difficult to have correct prediction. Certainly, we had and have some blurred vision. Therefore, we could not foresee the mega factors, such as probable policy interference from NRB, Big players' planned and massive attack, pressure of BT clearance, terror among investors due to sudden and excessive fall of market, etc. Traditionally and also logically, this was the time for market to move up. Without any major deterioration at micro or macro level, the market came down heavily. Partly, we failed to understand the market and partly this was beyond our strength of influence to assure our fellow small investors as they were in panic mood.

Let's look at first 6 transactions of Chilime yesterday: 1. 20 kittas at 2347, 2. 10 kittas at 2301, 3. 10 kittas at 2255, 4. 10 kittas at 2210, 5. 10 kittas at 2166 and 6. 20 kittas at 2155. Then mostly small investors lined up to sell at 2155. Another 90 transactions continuously had been at 2155. In this way, social Darwinism got present and accelerated and this phenomenon swept away many small fishes.

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