As I've been commenting, (well it is not only me but many would agree), that those heavily traded stocks which had brought Retailers and Large traders to the Market has to Consolidate. They must be given some amount of breathing space to accumulate and get those impatient, directionless traders to exit, and sell, in the process allow those who see the potential of those counters to collect and wait for the next move. The noticeable feature is that this side way movement is not at all corrective, that is because the tiny pauses the stocks go into are treated as quick collections to be grabbed by many, thanks to the expected Profit growths in these counters.
As noticed the amount of transactions dropped in the ASI, after hitting an unbelievable number of 10204 trades on the 2nd instant, it fell to 7220 in today's trades. This gives all Retailers that nothing goes up in one line nor vise versa. You must be geared and prepared for the worse case. UNLESS YOU KNOW TO MANAGE YOUR RISK you will be lost, and your trading will make you a loser. I suggest you to trade in small volumes and kick your GREED off.
When the Plantations and few other actively traded stocks went in a slow pace, the BANKS and a few S&P SL 20 counters dashed in with a vengeance. Commercial Bank Voting can never be traded by those short term traders. If that had to be taken up to it's rightful place, the Big Investors and Traders should get into action. That's what happened today. There were 3 major trades in COMB, 10 M @ 145, whilst 2.36M in 2 blocks went @ 146/=. All were bought by Foreigners. The next major trade was in HNB, with 102K traded @ 245.50. In the Normal Board there were 326 transactions in COMB between 140.50 and 146.50, while closing @ 146.00. All though HNB was not in the top 25 heavily traded list it had 50 trades between 245 and 246.10, finally closing @ 246.00. JKH is trending at the higher end of the channel, between 160 and 165, closed @ 164/=. The major mind blower still is SAMP - with 165 trades and T/O of 27M, it traded between 320/= and 325/50.
As sectors we saw 1941 trades in the Banking sector chipping with a whopping T/O of 2.14B taking the BFI index up by 235 points, whilst the near 2nd was the Traders darling - Plantation Sector. It saw 1648 trades with 63M in T/O, but it dropped marginally by 8.04 points. Manufacturing was the 3rd highest traded with 954 trades, but dropping by 16.48 points. The 4th being Land & Property Sector where we saw 712 trades with the index being unchanged.
I expect Friday's trading to be somewhat lacklustre as it is a day between 3 holidays and being the last day of the week, but could be an occasion to go shopping if the retail stocks continue to retrace. Yet the bulls wont just give lightly on Banks and plantations.
WEEKLY ASI CHART - 100 points rise could be on the cards........ have a look at the chart.
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