Being a partner of your Business

VPEL Upward trend with dividend announcement

2011-11-03T20:59:00.000-07:00

I see some sound technical uptrend for VPEL.N0000, If you closely look on VPEL technical chart, If it passed 9.10-9.20 levels today, it will be crossing 99 day aged trend line. Yesterday volume is considerable factor. Yesterday volume is more than 200%

of last 98 days average volume, As well as more than 1000% of last 7 days average volume. With this positive volume signals there is a moving average upward trend and RSI upward trend after two buying signals. Further, we have to consider dividend announcement 0.25 per share.

Also there are some cons behind predicted upward trend of VPEL.

· Still we can’t see trend line crossing or Moving average buying signal. We have only expectation.

· 500,000 volumes for VPEL is smaller amount when comparing with history

· We can’t predict short term trends of CSE

Thank you for joining with Share Market Statistics.

Happy Trading.

What Direction Market is Heading

2011-10-20T09:53:00.000-07:00

[20-10-2011 ] After few days, blogging was not easy with other works. I am bit busy these days with Income Tax period is began and need file all tax returns before 30th November. Anyway, But I can't avoid blogging. we have to look closely about Share Market Statistics now.

These days every body is talking about What it has really happen to CSE? Is it going to be another Bangladesh scenario. But this is the time for smart investors. Why, If you can enter today or few days later, that will be the right time to invest. If you look at ASI historical chart, there was a sudden appreciation during last year (2010). Most people believe correct value for ASI is between 5000-6000. I think this should have happen. This is a lesson for those who believe stock trading is a " kapruka". This is the reality of share trading. As every stock market also have upward trend as well as downward trend. This trend teach us buy share with some technical analysis for the particular share as well as market. When the market going down, we have to wait and look at what direction market is heading. Also we should have a exit point. Practically I bought SINI at 272 and sold at 365-370 levels. again I bought that 330 levels with a expectation for high profit. But with the down trend of the market signaled me to sell SINI at 295-305 levels with 30 rupees loss. Now SINI is 230-240 almost 55 down my exit point. I learnt it from Bill O'Neil (guru). I request you too follow that method with a some analysis. I considered downward trend of the market as well as selling pressure of SINI due to downtrend of the market.

As you all knew, RSI is now below 30 for most of the shares. That mean oversold. What will happen after oversold. Sellers think, now we should not sell and buyers think this is a good price to buy. With that thinking buyers will come to the market and prices will go up. You should understand this before arguing that market is going to collapse. This can't be happen. Now your time to collect shares. In this point you have to move on fundamentally sound counters as well as dropped shares with small volume. These shares will be lead the market toward profit.

If the market turn back prices will boost and we will miss the train. I expect history will repeat for AAIC and SINI. 200-235 is good price to collect SINI and AAIC price will slump further and good to collect at 150 levels. Having lot of shares to look closely, I mentioned these two shares for the time being. I'll publish other shares with fundamentals and technical analysis very soon. But you must keep your mind that I don't recommend to buy/sell or hold any share. You should analyse and decide that.

Happy trading

Tomorrow Share

2011-10-13T03:33:00.001-07:00

Based on the behavior of last market day, I think tomorrow will be the start day of super October. If you look my analysis on October 6, about Suwarnamahal Financial Services It shows a future of SFS based on technical factors.

I would like to mention some stocks that are closed to breakout and continue upward trends.
If you look at SFS I think it will touch 90 levels sooner
SINI will start its upward trend since price band lifted from 7/10/2011
LGL.N and X will continue its started rally
TAFL, GRAN and BFL also considerable

Further we can expect a good demand for fundamental sound stocks. because Friday MSI was up by 39.54 points (.67% up).

This is not a buy sell or hold recomendation

Swarnamahal keen to launch a gold ETF.

2011-10-12T04:28:00.000-07:00

Daily FT: In a major breakthrough to capital market development, the recent gazette notification on new Unit Trust Code 2011 has introduced the regulatory framework for Exchange Traded Funds (ETFs).

The Securities and Exchange Commission (SEC) has been keen to pave the way for ETFs and as a precursor to new regulations, received technical inputs from Securities and Exchange Board of India.

The capital markets has been bracing for ETFs whilst EAP Group-linked Swarnamahal Financial Services had gone public that it was keen to launch a gold ETF.

ETFs are an integral part of the capital and financial markets, offering wider options for investors in diversifying the management of their funds as well as risks.

I made an analysis on SFS fewdays back and it didn't appreciate as long as I predicted. I bought SFS at 76-78. I saw some technical indicator. After having above news I have some confidence about SFS.

Tomorrow Share

2011-10-09T07:57:00.001-07:00

I would like to mention some stocks that are closed to breakout and continue upward trends.
If you look at SFS I think it will touch 90 levels sooner
SINI will start its upward trend since price band lifted from 7/10/2011
LGL.N and X will continue its started rally
TAFL, GRAN and BFL also considerable

Further we can expect a good demand for fundamental sound stocks. because Friday MSI was up by 39.54 points (.67% up).

This is not a buy sell or hold recomendation

Suwarnamahal Financial Services Technical Analysis.

2011-10-05T22:37:00.000-07:00

Hi guys

All the figures are taken at 10.30 am today.

I think it is a right time to analyze Suwarnamahal Financial Services.

It shows a some upward trend with considerable volume support compared with 7 day average volume 27,657. But it just passed its 30 day average volume 71,883. Today already sold 74000 shares, It is more than 267% of 7 day average volume and 100% 30 day average volume.

Even though we can’t see a Moving average buying signal, We can predict It will show near future with it upward trend. I think another considerable factor is RSI upward trend after a RSI buying signal.

Further we should consider about this downwar

d trend of SFS since 28^th July 2011, more than five million shares sold between 128/= to 80/= level during the period from 28^th July to 5^th October.

We could see that some finance companies like MFL, LFIN,VFIN etc have some upward trend during last few days.

Even SFS has some upward trends to breakout It is important to have a good market as well as volume support. (Ex. 300,000- 400,000 starting volume). But peoples who purchased above 78 level may need to realize their money and earn some profit. If it passed 90/= level that will be a start of its rally.

Considering above factors we can expect a Suwarnamahal Financial Services Rally soon.

But this is not a buy sell or hold recomendation

aloso read http://accountancy-forum.blogspot.com/2011/09/practical-nature-of-yesterday-lesson_21.html

Posted by : thushanthalk

e Toro in one of best forex trading platform.

2011-09-28T00:48:00.000-07:00

eToro is one of the best Forex trading software for beginners. One of the main objective of eToro was to make Forex trading easier for begginers and they have achieved it by providing a graphical user interface where people who are new to Forex trading can visualize there trades to better understand their situation. You can easially start forex trading by depositing money with e Toro. Creating an account is easy and you can even create a demo account and get a feeling of what it is like. I suggest you to start with demo account that is more important for beginners to save your hard earned money. Forex trading can be very rewarding but at the same time it can be risky as well. Please

Although its great for beginners eToro haven't forgotten about experienced traders as well. There is an advanced trading interface for experienced traders and there are some new features introduce in eToro that makes it even more great for trading. I have highlighted some of them

· Up to 1000$ first deposit bonus. They give you 50% bonus for your first deposit up to a maximum of 1000$. Just in case if you didn't get it if you deposit 2000$ you get 1000$. If you deposit 1000$ you get 500$. But if you deposit 2500$ you still only get 1000$ bonus.

· You can start with a minimum deposit of 50$. This is not recommended though and you will get a lame bonus of 25$.

· You can trade commodities like Gold, Silver and Oil

· Web trader - most other platforms require you to install some software in your computer. With eToro you can do trading from anywhere in the world using Web trader. You do need a reasonably powerful Internet connection

· Support for multiple languages

· Cash prizes for demo and real trading championships

eToro really is a great Forex trading platform especially if you are new to trading. Its free to sign up and you can use the demo account until you feel comfortable about trading for real.

Favorable SINI

2011-09-26T00:58:00.000-07:00

Guys Look at SINI. Today it passed resistance level. As my previous examples look here SINI breakout its long term trendline at 234 and short term trend line breakout at 253. Further its moving average buying signal and RSI uptrend also considerable. I think it is under valued stock compared with other similar companies net asset valuations. Net assets as at 30.06.2011 Rs. 202/= and EPS over 6/=

Start Forex Trading

2011-09-25T11:32:00.000-07:00

Hi friends

If you are so interest about Forex Trading lets join with Forex trading platform providers and start trading with a sample practice account. That us the most convenient and reliable way to start Forex Trading. Some sites provide practicing with real time rates. That is more useful than using past data. My main advice you to don't start Forex trading without having perfect idea about how it works. Forex platform is give you more money as well as bankruptcy. I can't mention here names of sites since I have no authority to do so. You have to find that. Some brokers provide newcomers

· Starting with small deposit

· Personal trading coach and 1 0n 1 trading sessions

· A VIP account with exclusive benefits

· Advance Trading and Analyzing Tools

· Toll free support and live chat etc..

Now time to start practicing..

The Best way to Trade Gold - Part I

2011-09-25T02:52:00.000-07:00

The investment in Gold has gained positive popularity over time. Gold is known for its stability and good fundamentals that make it easy to trade it. With the surge of online trading, you can now trade Gold with a starting capital of a few hundred dollars. Gold is least affected by inflation during bad economic times and thus a good refuge when it comes to safeguarding your wealth. Before jumping into trading gold, it is important that you learn a few tips and understand the factors that control the movements of gold prices. Gold, compared to paper currency, has more value and thus considered more profitable.

Gold has its own characteristics

Gold is different from forex trading in many ways, but the principle of buying low and selling high is constant to any financial instrument you are trading. Gold is a lot less volatile than most of the currency pairs traded in forex. Therefore it is very hard, sometime impossible to scalp trade gold. Brokers offer very low leverage for gold. It depends on the broker, but in general the leverage on gold is almost the tenth of currency pairs. However, gold has a lot of advantages; with a larger initial capital, there is a good chance that you make more profits. Since gold is more stable than currencies, it will stabilize your trading.

Trading gold online is among the safest and cheapest way to invest in gold. {The first advantage is that you will not have to worry about security or storage space as you will not come into contact with the gold physically.} {Online gold trading has many advantages. You will not worry on where to store it or worry for its security.} You can use the available leverage if you do not have enough capital to start trading. To succeed in spot trading, there is a need to manage your money. Like in every other market, never over-leverage because it can wipe out your money in fraction of seconds.

Portfolio diversification

This is a good example of not risking everything on one endeavor. Because there are different ways of investing in gold, you should spread your investment in all of them. This is just a way to minimize possible risks. Diversification protects you from major losses in one investment. You can consider investing in gold bars and coins for a value of 35% of your capital, the rest can be split between gold futures (20%) and spot gold (45%).

Do not put in all your money at once; instead, you can gradually increase your exposure to the gold market. It will give you the time to watch the trend and understand your trade better. Now, you should be aware that there are a lot of ways to invest in gold. It is essential that you diversify your capital between all of these financial instruments.

Introduction Support & Resistance with practical Examples

2011-09-24T04:28:00.000-07:00

Stock prices are moving head-to-head battle between a bull (the buyer) and a bear (the seller). The buyer push prices higher and the seller push prices lower. The direction prices actually move reveals who is winning the battle.

According to the illustrator GREG.N000, During the period shown, note how each time prices fell to the 55.10 level, the bulls (i.e., the buyers) took control and prevented prices from falling further. That means that at the price of 55.10, buyers felt that investing in GREG.N0000 was worthwhile (and sellers were not willing to sell for less than 55.10). This type of price action is referred to as support, because buyers are supporting the price of 55.10.

Similar to support, a "resistance" level is the point at which sellers take control of prices and prevent them from rising higher. GREG.N0000. Note how each time prices neared the level of 75/=, sellers outnumbered buyers and prevented the price from rising. illustrator GREG.N000, During the period shown, note how each time prices fell to the 55.10 level, the bulls (i.e., the buyers) took control and prevented prices from falling further. That means that at the price of 55.10, buyers felt that investing in GREG.N0000 was worthwhile (and sellers were not willing to sell for less than 55.10). This type of price action is referred to as support, because buyers are supporting the price of 55.10.

The price at which a trade takes place is the price at which a bull and bear agree to do business. It represents the consensus of their expectations. The bulls think prices will move higher and the bears think prices will move lower.

Support levels indicate the price where the majority of investors believe that prices will move higher, and resistance levels indicate the price at which a majority of investors feel prices will move lower.

But investor expectations change with time! For a few moth since September 2010 investors did not expect the GREG.N to rise above 90/= Yet only a few months later, investors were willing to trade with the GREG.N near 120/=.

When investor expectations change, they often do so abruptly. Note how when prices rose above the resistance level of recent bull stock REG.N, they did so decisively. Note too, that the breakout above the resistance level was accompanied with a significant increase in volume.

Once investors accepted that REG.N could trade above 189/=, more investors were willing to buy it at higher levels (causing both prices and volume to increase). Similarly, sellers who would previously have sold when prices approached 189/= also began to expect prices to move higher and were no longer willing to sell.

The development of support and resistance levels is probably the most noticeable and reoccurring event on price charts. The penetration of support/resistance levels can be triggered by fundamental changes that are above or below investor expectations (e.g., changes in earnings, management, competition, etc) or by self-fulfilling prophecy (investors buy as they see prices rise). The cause is not as significant as the effect--new expectations lead to new price levels.

What is Forex Trading?

2011-09-23T11:45:00.000-07:00

Forex Trading is trading currencies from different countries against each other. Forex is acronym of Foreign Exchange.

For example, in Europe the currency in circulation is called the Euro (EUR) and in the United States the currency in circulation is called the US Dollar (USD). An example of a forex trade is to buy the Euro while simultaneously selling US Dollar. This is called going long on the EUR/USD.

How Does Forex Trading Work?

Forex trading is typically done through a broker or market maker. As a forex trader you can choose acurrency pair that you expect to change in value and place a trade accordingly. For example, if you had purchased 1,000 Euros in January of 2005, it would have cost you around $1,200 USD. Throughout 2005 the Euro’s value vs. the U.S. Dollar’s value increased. At the end of the year 1,000 Euros was worth $1,300 U.S. Dollars. If you had chosen to end your trade at that point, you would have a $100 gain.

Forex trades can be placed through a broker or market maker. Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few

Potential Growth in Bank of Canada will be a green lite to CSE also

2011-09-23T11:16:00.000-07:00

SAINT JOHN (Reuters): Canadian economic growth will resume this year and the European debt crisis is “fixable” with existing resources, Bank of Canada Governor Mark Carney said.

In an apparent bid to counter growing fears of another recession in Canada, Carney also said he does not expect a U.S. recession, although the risk of one has “clearly risen”. He pledged to act to protect the Canadian recovery if needed, although he did not signal an intention to cut interest rates.

“For its part, the Bank of Canada has a wide range of tools and policy options that it will continue to deploy as appropriate,” Carney said in the prepared text of his speech.Those tools include emergency liquidity operations for banks in case of a massive external shock, he said.Speaking as markets focus on the debt-stressed euro zone and efforts to prevent Greece from defaulting, Canada’s top banker said the country is more threatened by its neighbor and top trade partner, the United States, where the economy is “close to stall speed”.Carney estimated U.S. economic growth of about 2 percent through mid-2012, compared with the bank’s July forecast of around 3.25 percent in the second half of this year and in 2012-13.His comments otherwise appeared largely the same as in the bank’s last rate statement and in Carney’s testimony to Parliament in mid-August.“I don’t think we are quite at the stage where they need to contemplate (interest-rate) cuts but the bank will be very flexible and see how the situation evolves to respond appropriately,” said David Tulk, chief Canada macro strategist at TD Securities.“But our view is that they would prefer to keep the policy rate lower for longer and let fiscal stimulus provide any support in the event the economy needs it.”The bank held its overnight target rate at 1 percent on September 7 and signaled it would hold interest rates steady for some time.In a Reuters survey of Canada’s 12 primary securities dealers following that rate decision, the median forecast was for a rate increase next July. However, yields on overnight index swaps, which trade based on expectations for the policy rate, are pricing in a rate cut by March.Before Carney spoke, the International Monetary Fund downgraded its 2011 economic growth forecast for Canada on Tuesday to 2.1 percent from 2.9 percent, and to 1.9 percent in 2012 from 2.6 percent.The bank won’t revisit its forecasts of 2.8 percent for 2011 and 2.6 percent next year until its October report.Carney dedicated much of his speech and news conference to the European debt crisis, hammering home the message that the region has the resources to manage the crisis but lacks the political will.He lined up behind the IMF’s calls for a comprehensive plan to recapitalize banks.The European Financial Stability Facility and the European Central Bank have enough resources to deal with the problem, he said.“They have more than sufficient resources … in the European monetary union countries to address the situation in the peripheral economies and even some of the core countries that are being put under strain,” Carney said.A repeat of the 2008 credit crisis is “unlikely,” he said, because of the liquidity available in Europe.Brazil has said it was willing to pump in $10 billion through the IMF to aid Europe, but Carney said that while such initiatives were welcome they were not necessary.

SINS break out

2011-09-23T00:25:00.000-07:00

Today SINS breakout its 80 days aged trendline with more than 1500% 7 day average volume. I think this will create a new high near future. It shows RSI uptrend. Sometime it will show a moving average uptrend today itself. If volume raise more th
an 350,000 or 400,000 more potential to go up. But due to force selling it can be slowdown it's upward trend. But this is not a buy/sell or hold recommendation.

Lets look at candlestick chart. Here I used only trendline, because still we have posted trend line article only.Happy trading.

Shareholders divest LOFC shares

2011-09-22T20:50:00.000-07:00

Daily Mirror: Lanka Orix Finance Company (LOFC) which is a subsidiary company of Lanka Orix Leasing Company PLC yesterday became the top contributor to the day’s turnover, as the market witnessed a single crossing of 52 million shares, each at Rs.12 generating Rs.624 million. Unconfirmed reports suggested that sellers and buyers are both local parties. According to the shareholder list presented with the introductory document of the LOFC that was released last May, there are only three parties that held over 52 million shares besides the largest shareholder LOLC with 90 percent stake.

The three parties who had over 52 million shares were India Focus Cardinal Fun (100 million shares or 3.57%,), Saakya Capital Private Limited (65.6 million shares or 2.34%,) and Infinity Capital Limited (60 million shares or 2.14%). Meanwhile Indian media reports said yesterday that Securities and Exchange Board of India (SEBI) banned India Focus Cardinal Fund, which was the second largest shareholder of LOFC and four other international funds from the Indian stock market for their alleged role in stock manipulation.

LOFC share opened at Rs.11 and closed at Rs.10.20. The total number of LOFC shares traded was 52.1 million. LOFC has 2, 800 million shares in issue, and initially the share came into the market with an indicative price tag of Rs.5.

Practical Nature of Trend line

2011-09-21T21:23:00.001-07:00

Hi guys, I think you all have some knowledge about trend line and it's breakout. In CSE we could find this is more effective for recent bull runs. Latest example is RGEM.N0000. After looking at these examples you can identify how important this trend line. Major important factor of this is you can identify pivot point of investment.

RGEM.N0000

Other Previous Examples

Now your time to find breakout and invest in those shares. Thank you.

Start Learning Technical Analysis

2011-09-21T08:35:00.000-07:00

In this first lesson of Technical Analysis we’ll review “Trends”. A trend represent a change in investor expectation. But it differ from support/resistance levels in that trends represent change, therefore support/resistance levels represent barriers to change.

According to the example picture, A rising trend is defined by successively higher low- prices. A rising trend can be thought of as a rising support level--the bulls are in control and are pushing prices higher.

Following picture shows a falling trend. A falling trend is defined by successively lower high-prices. A falling trend can be thought of as a falling resistance level—the bears are in control and are pushing prices lower.

Just as prices penetrate, support and resistance levels when expectations change, prices can penetrate rising and falling trend lines. Following example shows the penetration of Ceylon Tea Brokers PLC (If you look at GRAN history chart, you can see after a continuous falling trend, it move up to 162 from 87 -90 level. Therefore this technique can use to identify momentum) falling trend line as investors no longer expected lower prices. You can see how volume increased when the trend line was penetrated. This is an important confirmation that the previous trend is no longer intact.

As with support and resistance levels, it is common to have traders' remorse following the penetration of a trend line. Here Browns just after the long term trend line breakout prices were came down due to traders’ remorse.

In technical analysis main considering factor is volume. Even trend line crossed the long term falling or rising trend without volume support it should be neglected. Because volume mean demand. Since share market is a auction place demand is very important.

Thank you for joining this blog. your feedback is very important me to post many lessons. If you have any experience relating to any topic please share your knowledge and help to build a effective stock market.

Force selling coming in... Share Market can be slower.

2011-09-19T09:58:00.000-07:00

According to the CSE directive dated 19th May 2011, 25% of the remaining debtors over T+3 days to be cleared by 30th September 2011. Therefore we can expect force selling on coming two weeks. Therefore traders should avoid panic selling and move on to fundamentally sound counters.

Stocks, euro slip as crisis drags on

2011-09-18T21:05:00.000-07:00

HONG KONG(Reuters) - Stocks fell and the euro dropped 1 percent on Monday as investors worried about Europe's fumbling attempts to solve the euro zone debt crisis and awaited a meeting of the Federal Reserve for clues on whether it will offer fresh stimulus for the sputtering U.S. economy.

A weekend of disappointing news from the euro zone prompted market players to cut risk and move into gold and U.S. Treasuries, even as speculation grew that the Federal Reserve will announce further quantitative steps, such as lengthening the maturity of its debt holdings at a policy meeting this week.

EU finance ministers meeting in Poland broke no new ground in dealing the crisis in talks over the weekend.

A cancellation of a visit by Greek Prime Minister George Papandreou to the United States to chair an emergency meeting and a regional election defeat for Germany's chancellor Angela Merkel also weighed on the beleaguered euro.

Greece on Sunday pledged to take tough decisions needed to secure a fresh round of international aid and avoid default, but announced no new austerity measures.

S&P futures set the weak tone for Asia, falling 1.3 percent.

MSCI's index of Asian stocks outside of Japan fell 1 percent, edging back toward its July 2010 low hit last Monday. Japan's markets were closed for a holiday.

Australia's index .AXJO fell 1 percent while Korean shares lost .KS11 0.6 percent, led by losses in banks after the country's financial regulators on Sunday imposed a six-month suspension on seven ailing savings banks.

"The market will probably start off flat and trade within a limited range as we have not seen strongly positive progress in Europe," said Kim Soo-young, an analyst at KB Investment & Securities.

"Banks in particular may come under pressure after the announcement of mutual banks' suspension," Kim added.

In currency markets, the euro dived a cent against the dollar with investors looking toward a G20 meeting on Thursday and Friday for any likelihood of coordinated action to restore market confidence.

The euro fell to $1.3654, edging back toward a seven-month low hit last week, and to 105.13 yen, as investors reacted to the unproductive European Union meeting.

The dollar .DXY rose 0.8 percent against a basket of major currencies.

The pullback in risk appetite increased demand for gold with the precious metal extending its chunky gains from Friday by 0.7 percent to $1,818. It hit a record around $1,920 per ounce earlier this month.

U.S. crude fell toward the $87 per barrel line as weak U.S. economic data and the troubles in the euro zone pointed toward a slowing global economy.

Market likely to maintain low profile this week (Ft.lk)

2011-09-18T12:10:00.001-07:00

Senior brokers said the Colombo stock market was likely to decline marginally next week, keeping a low profile as only one fourth of sales volumes that had to be completed to comply with a Securities and Exchange Commission directive to reduce debt had been carried out.
Three fourths of share sales have to come into the market and these are forced sales. One or two stocks may pick up but these are likely to be low value stocks, a trend that has been continuing, a stock broker said. These may not be justifiable but are good signs because otherwise retail investors will get fed up, he said.
Last week the All Share Price Index lost 119.41 points to close at 76,870.92 while the Milanka Price Index dropped 77.69 points to close at 6,209.24. Average daily turnover was Rs. 2 billion and net foreign outflows for the week were Rs. 958.4 million.
Investors are also now wary as to whether their investments are safe, brokers said.
The Securities and Exchange Commission recently cautioned five investment advisors and two investors for market manipulation in trades carried out last year during July and early August and retail clients are likely to keep away from the market.
Foreigners who have been net sellers since January are likely to remain net sellers and there will be more pressure on the market as there is a limit to how much State funds and high net-worth individuals can absorb, he said. The market is likely to be dull next week, brokers said.

Asia stocks up, bearish bets trimmed ahead of Europe meet

2011-09-16T19:06:00.000-07:00

SINGAPORE/HONG KONG (Reuters): Asian stocks jumped on Friday and the euro steadied, after rising sharply the previous day, as investors hoped for a big policy move from European finance ministers to combat the debt crisis.
Coordinated central bank action around the world to boost liquidity for European banks, at a time when some institutions have been shut out of short-term lending markets, has raised speculation that policymakers may take bold steps to hold the euro zone together.
Equity markets in Asia rallied taking heart from the S&P 500 closing above the 1200 level, which had proved to be a stiff resistance over the past two weeks.Japan’s Nikkei was up 1.8 percent, climbing above a steep trendline formed off intra-day highs in August and September.
“With today’s rise, it is like we are cautiously climbing up a wall but at the same time we’re thinking that the wall may collapse if we go up any further,” said Kenichi Hirano, a strategist at Tachibana Securities.
Profit-taking ahead of a long weekend in Japan could see some of the gains fade in the afternoon session.
The benchmark MSCI index of Asia Pacific stocks outside Japan rose 2.3 percent, with gains mostly spread between technology and commodity-related shares.The index has rebounded more than 4 percent from a 14-month low hit on Wednesday.While stocks across Asia rallied, volumes remained light and were significantly below levels seen during the selloffs over the past six weeks.
“It certainly doesn’t feel like a rally, but then again, that’s what melt-ups are all about,” said Todd Martin, Asia equity strategist at Societe Generale in Hong Kong, in a note to clients.In Hong Kong, shares of European retailer Esprit Holdings fell more than 32 percent – the worst two-day drop since October 1997 – after disappointing first-half results on Thursday.Weakness in Asian currencies as foreign investors offloaded on regional bets and thin equity volumes, however, suggest investors remain sceptical that the debt crisis can be solved by providing temporary emergency funds for banks.
“Obviously it’s not a long-term solution, we need to see some resolution to the sovereign debt issue to give market confidence we’ll have stronger growth over the medium-term,” said Spiros Papadopoulos, a senior market economist at National Australia Bank.
“Certainly these policy measures will help improve confidence in the short-term,” he added.
This week has seen hedge funds of all stripes and mutual funds selling Asian currencies at a rapid pace and the move continued on Friday in spite of the stable euro.
The euro slipped 0.2 percent to $1.3850 though was actually up 2.1 percent on the week, with the swift move up through $1.3750 making traders nervous about opening bets against the currency ahead of the ECOFIN meeting and with the next Federal Reserve meeting on Sept 20-21.
The weakness in Asian currencies has spilled over to the Australian dollar because of the antipodean currency’s use as a play on investor risk-taking.
The Australian dollar was down 0.1 percent to $1.0321 and has fallen a percent this week.
Spot gold prices slid 1 percent to $1,772.75 an ounce, on course for the biggest weekly decline since January 2009.
The combination of resilient equities, a rebound in the euro and a bearish double-top chart pattern in gold have combined to cast a shadow on the safe-haven asset.

Colombo Stock Exchange Updates

2011-09-15T11:05:00.000-07:00

Hi Guys,

Now you can read daily stock market updates using this blog. This is a good opportunity for every willing Investing in Colombo Stock Exchange which is the best performing stock exchange in Asia. We wish to improve your technical and fundamental knowledge through our posts.
Lets comment what areas you would like to read?

Good luck

Cheque Writer - Excel Model

2011-03-04T22:16:00.000-08:00

Hi friends, This is a freeware developed by me using Microsoft Excel 2007. Now you can print cheques using this small excel model. When you are using this small software pls do not forget to enable macro in trust center of options panel in excel. http://www.ziddu.com/download/14056760/CHQWriter.xls.html

Union Bank IPO

2011-02-09T21:09:00.000-08:00

Now you can Download union bank IPO application in word format using the following link

http://www.ziddu.com/download/13744836/UnionBankShareApplicationForm.doc.html

Budget 2011

2010-11-22T09:56:00.000-08:00

President present a tax reforming budget to the parliament last evening. Major changes in tax structure can classify as follows.

* Tax free allowance increased from 300,000 to 500,000 and expand and revised the personal tax slabs from 400,000 to 500,000.

* Tax deducted from employment income under the PAYE scheme will be treated as final.The facility of applying for directions or refunds will not be available in relation to the employment income. Accordingly, the requirement of filling returns by them will not arise

* The payments to Directors etc., referred to in section 117 will also be subject to WHT tax at 16%, if such payments received from an employer exceed Rs.25, 000/- per month. Otherwise remain unchanged.

*The sum paid from a Provident Fund referred to in section 35(2) (d) and (e) of section 35 of the Act, will be excluded from the liability.

* The existing files of employees will be closed, if tax on other sources is also treated as final.

* Expenses on listing a company will be deductible subject to a limit of 1% of the value of the Initial Public Offer.

* The present restriction of 50% will be reduced to 25%. Accordingly, 75% of advertisement expenses will be allowed.

*deduction of expenses on foreign travel will be allowed if incurred in the production of income maximum subject to 2% of previous year total statutory income.

* The present WHT applicable on specified fees will be discontinued with effect from april 01. 2011.

* The members of AAT will be recognized as authorized representatives for the purposes of the Inland Revenue Act.

* The present 20% rate will be reduced to 12%. Accordingly, there will be only one rate applicable other than the Zero Rate.

* The present registration threshold of the normal VAT will remain unchanged.

* The present restriction of 85% of the output tax will be extended to 100%, in respect of any tax invoice or custom declaration issued on or after January 1, 2011.

* There is no upper limit of turnover for the application optional VAT rates. However, the option is available to register for normal VAT at any stage.

*The present NBT rate of 3% will be reduced to 2%.

* The present threshold of Rs 650,000 per quarter will be reduced to Rs 500,000/- per quarter.

* ESE The present threshold of Rs. 7. 5 mn per Quarter will be increased to Rs 25 mn.

* Debits tax will be removed with effect April 1, 2011.

* SRL on income tax will be removed with effect from April 1, 2011.

* The TT will be abolished with effect from 1.1.2011.

* The present share transaction levy rate of 0.2% will be increased to 0.3% with effect from January 1, 2011.