SEC to monitor stocks related social media activity

So, rationality has taken a backseat as usual in the CSE trades.

“The country is barely opening up for tourists and hotel sector shares rising up in price should not be expected because there are so many other things that need to be done to attract tourists. These stories behind the share price increases are fairy tales,” a stockbroker noted.

“Most are attracted to companies with low free-float. A liquidity squeeze in these share price movements is clearly visible,” Murtaza Jafferjee, CEO JB Securities Ltd told the Business Times. He pointed out that the total turnover is down despite the unprecedented price increases.

The market will catch major headwinds with the imminent increases in interest rates, he added. “If this trend on share price hikes in low value stocks continues, we are headed for a crash.”