Thursday, September 15, 2011

‘Nationalism’ takes a beating and SEC deals the blow

The SEC delivered a blow to some sections of the market who tried to defend the actions of market manipulators for obvious reasons, because they were somehow responsible, by feigning patriotism.

Around the time the SEC began to focus on suspect transactions in shares of Dankotuwa Porcelain PLC, Blue Diamonds Jewellery Worldwide PLC, Touchwood Investments PLC and in the warrants of Environmental Resources Investments PLC that took place last year, some interested parties begun circulating a story that anti-Sri Lanka and anti-government elements had been behind the SEC’s move.

The wild fluctuations of penny stocks, mainly the ones highlighted above, had put winds beneath the CSE which soared to become the second best performing stock exchange in the world.

But when the SEC began to take corrective measures, and rightfully investigate illegal activities, some interested parties obviously tied with these shady trades attempted to spread a theory that anti-Sri Lankan elements were trying to drag down the market. One such rumour monger, The Island Financial Review, reliably learnt was also being investigated.

This investigator was being monitored for pumping and dumping, and together with the anti-Sri Lanka card, he is known to have attempted to spread the false belief that established blue-chips were jealous of the sudden rise of popularity of ‘junk’ stocks, and thus a concerted effort was being made to bring the CSE down.

As the saying goes, nationalism is the last defense of every scoundrel.

source- www.island.lk

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