hisah wrote:lochaz-index wrote:hisah wrote:lochaz-index wrote:mlennyma wrote:Angelica _ann wrote:EABL is also on a free fall!!!!!
I expect almost all stocks including kk to fall as holidays knock in until February and a slight pick up in March mixed with election fears
banks Q1 results will largely shape the nse in 2017
I like this bear. Very systematic. Eabl belonged to a small band of stocks that have weathered the bear so far.
Equity and Kcb got downgraded in a huff. Eabl is the latest member to be tossed out of that party. Safcom, BAT and Jubilee are holding fort till their time in the cleaners arrives.
Watching keenly to see if the 3,000 level will be broken before the year is out.
The sooner the market resolves this consolidation between 3000 and 3300 the better. The market is taking too long to test 3500 which means a break below 3000 is now having more weight!!! Anything below 3000 will be a huge blow to the market psyche. Most likely it would take us to sub 2000 with safcom being the most active participant bar none.
I do not think the banks have seen their worst yet.
The fed hike and subsequent hikes are going to cut the foreign funds flow into emerging markets. Only trumponomics fiscal stimulus remains as the saving grace... The NSE20, currently @3148 is sitting just a few points above the capping selloff low of 3116. 2011 bear run ended at 3070. Any dip below those two levels - in addition to losing the psychological 3000 mark - takes us back to 2009 metrics, a 7 year low.
As for the banking sector the siege is yet to end. Apparently insurance companies are reducing their interest earning bank deposits in favor of buying govt securities in the post rate cap period. Tough balancing act for banks as they are caught between reducing costs of deposits or losing them all together.
In 2015, total industry NPLs came in at 123b. The same figure stands at 213b as at October 2016! Nearly double the previous year's figure. Given that credit growth has shrunk to GFC levels, NPLs will bulge all the more especially from the re-fi clients. An aneamic economy in 2017 increases those figures and forces huge write-offs/LLPs.
The main purpose of the stock market is to make fools of as many people as possible.