The devaluation of the Rupee has spooked the investers with the additional burden of the world situation and that led to a selloff triggering the ASPI to come down drastically though not triggering circuit breakers like during last week of February , overnight the global markets have recovered with possitive signals coming out the waring parties especially Ukraine President indicating he is ready for compromises for peace. The oil price futures have dropped double digits to around $110 a barrel. The Sri Lankan situation is created with liquidity crunch created by huge retail speculation on gone wrong on LOLC group related company merger gone wrong with huge price crash in CLC merging with LOFC , the week started in Monday qich CLC trading at 50 plus and LOFC in the mid 20s after the holding company selling down it’s stake by around 100 million shares at RS 25.30 . The retail speculative trading absorbed many of the selling of LOFC from RS 28 and since the price of it coming down to 14 yesterday the market is short of cash to take advantage of the huge discounts in more performing stocks with very good profits going at bargains to support the retail losses in CLC LOFC trades. Today ideally with relative recovery in global situation and the floating rupee will hopefully cool off the sentiment and longer term possitive views may help the market settle down first before any unrealistic gains .
