Market stayed possitive at close of trading yesterday even though there was a push down during the second half of trading in the afternoon session.The indices closed mixed with ASPI closing up 69 although during mid session it was almost 150 points up, and the more liquid S&P SL20 closed down 24 points on a small turnover of 1.3 billion.
The Brokerage companies have had the best year of their entire lifetime and seem to be flushing out the last of the red lines on their accounting books so they end with a massive year and comfortable leverage with their respective boards for handsome rewards through increments promotions and lavish profit sharing amongst the stake holders. The initial indications of the cleaning of the books came in early January when the brokerages that offer credit facilities to investors against the stock portfolio as a business model generating additional revanue started cutting down on the facility from as much as 70% down to 20% and some cases withdrawal of such facilities completely . This did contribute to the market loosing it’s liquidity and started to come off quite rapidly and it’s quite evident that some of the CEOs and the senior management knew the unraveling political and economic situation that we see now far before the queues started forming and as they did last year started cleaning up the books that directly effect negatively to the best performance of their lifetime.
Today too the market will further consolidate through the HN and seasoned investors continuing to collect the bargains while some will practice a little window dressing of stock prices to suit the numbers for the quarter or year ending 31st March results.
