ASI - Hemorrhage or Carnage OR both?

ASI is on a free fall. Normally in the developed markets, you have institutional investors both local and foreign who step in to accumulate and increase their  investments. Presently in the case of the CSE we see institutional contribution mostly from the foreign side, and less from local side.

Institutional buying is not considered to be naive. These institutions employ the best teams, with immaculate knowledge and qualifications. Their investments are done through extensive studies, and comprehensive strategies. Even if you buy a stock at 205/- lkr, they should have a valid reason. When the same stock is now trading at 59.50 for them not to buy, obviously must be having valid reasons. When one type of Institutional parties out of the foreign or local is buying low another is on the sell side. Then the same seller is buying high at bloody expensive prices, with valuations that are over the roof. For all that these best of the best teams must be having valid reasons.

Today the Foreign institutions are aggressively participating, but mostly to sell. Local Institutions may be aggressive too  but who knows. If they are really really on the buy side, then it is a great moment for the market, as the cheap value of the market is accumulated by them to increase the wealth in the long term. That long term period can be very long. As the present market valuations deserved to be accumulated to be held for GENERATIONS. Most of these local institutions have a role to play in the best interest of the Country, and its stakeholders. Their role should be as long the Country is on the planet. As this country will not disappear from the planet, these institutions must be viewing their holdings and investment as really long term. As I mentioned may be investments for Generations to come.

Hemorrhage is when the blood is escaping from a ruptured vessel, it is fatal. Carnage is the killing of a large number of people. The present situation in the market can be seen in both angles. If you do not have a plan, and do not see long term investors, including the aforesaid local and foreign institutions in action, then you would first Hemorrhage and get caught to a carnage. Is there a reason for us to not feel the local institutional buying because of a valid reason. Are the valuations still high???