False social media msgs’ drop Colombo shares
Colombo stocks recorded marginal losses for four days straight this week with declining turnover which stockbrokers attributed to deceptive social media endorsements by certain high networth investors leading the Twitter, WhatsApp ‘game’.
“There was misleading information on fundamentally string stocks,” a stock broking company CEO said.
They were informing retailers to sell out and make profits on certain shares, another stockbroker said alleging that these moneyed traders created fear anticipating buying lower on certain shares to make a quick profit. Analysts said that certain high networth traders were seen pushing the prices down in dollar earning counters.
“Some high networths had got latest shareholder lists of dollar income earning stocks and pointed at large shareholders of these companies selling their shares in these messages. This had turned sentiments of a large trader base who sold these shares,” an analyst said.
A second stockbroker pointed out that the Colombo Stock Exchange (CSE) is a ‘little’ overheated and that profit taking is healthy.
CSE switched to a free float adjusted market cap based index on Monday. Analysts said that this revision will not directly affect market capitalisations of individual companies, but impact of illiquid shares on the index will be greatly reduced.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!