Subsequent to a meeting between the authorities overseeing our Stock Exchange, at a press conference last Thursday evening, the local major banks collectively came out to blame the syndicates (rogue traders) which manipulated certain shares to non sustainable (overvalued) prices and denied that they were withdrawing credit lines that had caused the recent plunge in share prices. There was nothing wrong with most of the companies whose shares plunged to their lifetime lows, they said. These local banks then went on to announce that they can provide margin facilities for those shares that the foreign banks are no longer financing!
With this vote of confidence and more importantly the availability of fresh or extended credit lifelines, the overall share market went up for two consecutive trading days (last Friday, June 3rd and today).
Things are looking up, but the Yi tells me to store up energy and rest until the right time for action to buyback the shares sold in March. Therefore one holds firm and wait cheerfully for further developments, by the relevant authorities and at the ‘foreign’ front, to work on what has been spoiled?
To be continued.
No comments:
Post a Comment