ASI continued its decent for the 3rd day in a row from a high of 6170 to a low of 6118. There is some hope only if JKH turns tomorrow. But the way the Foreigners were selling, am not sure whether that selling will be over on the morrow. The sad thing is that they start selling only at lower prices, and once that selling is over it goes up. some say the Buyers are bargaining at lower levels as some foreigners are selling out of emerging and frontier markets. Then the Central Bank of Sri Lanka may find it difficult to keep the dollar down, when dollars by way of investments, FDI's and remittances are not on the rise. As such Foreign selling of stocks and bonds has an immediate impact. I have learnt that a BAD COMPANY Borrows short term and Invest that money on things which won't give them immediate cash. So you pay for the debt with short term cash. Our country is doing something similar in a different way. We say dollars are coming when we do this that and the other, but pay for the massive debts monthly with taxes, bills and bonds. There is no point hoping and hoping and hoping, when things are becoming hopeless. As a result the immediate situation is not good but as the pundits say the long term picture is changing to the better. Therefore the short term carnage will not stop until the long term goals start getting realized in the short term. Can that happen......Well some say it will in time to come, also we see Economic and Social problems all around the world that has not seen a recovery as yet.
ASI can take a breather around 6100, failing which must turn before it comes down towards 6024. Around this time if some good tangible events take place in the Country then the market will celebrate them else it will only be another pause of the present downward slope.
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