September dawned with the Financial Times, a Sri Lankan newspaper that dedicates most of it’s space to press releases carrying a story titled ‘super september‘ with absolutely rediculous statistics. To their credit though, they did publish my comment on that page calling it exactly that. However the trackback from my post tearing down the story appears to have been edited. In the meantime, a comment by another reader asking ‘How much did the market manipulators pay you to bring the lambs to slaughter???’ is just priceless.
Now that September is winding down, it’s time to ask if it really has been a super September? Market manipulators will say hell yes they certainly made a packet. Even last week they succeeded in pushing two counters more than 50% (REG and AAIC). In the meantime the vast majority of counters have declined steadily. Inspite of this the All Share Price Index has declined only 145 points while the Milanka Index has lost just 215 points. Such divergence is due to the fact that COMB, one of the largest listed companies has risen 2% while the largest of all JKH, have it’s ground. The nature of the CSE is such that large caps have a huge impact on the indices while the impact of the small caps is negligible.
The next question what happens now? Many including the eternally optimistic Sarath Rajapakse of Capital Trust is predicting that the market will decline rapidly during the last few days of the month but will shoot back up again from October. I take a contrary opinion (as always), the market might actually recover towards the last few days of September, thanks again to manipulations. The reason is obvious; many listed companies have boosted their bottomline by trading/investing in other listed companies if the market dips much below the June 30 levels, these companies will be forced to take a hit on their bottom line and it’s likely that something will be done to avoid it.