Who is responsible for the sudden uptrend in CSE

Guess it.

Look @ the foreing buying. Friends locals alone can't take this market from 4850 levels to close to 6000 levels. it was the foreign factor. for this week alone net foreign inflow tops 1.0bn mark.

As per the news circles still lot of foreign buying on the pipe line for the counters like ..............you should know by now what are the favorite picks of foreigners.

Just check the YTD net foreign buying. All the crazy selling ( Our people thought this will be the end of CSE - who have limited knowledge about mkt behaviour)of locals comfortably absorb by the foreigners.

NEXT week will be a .......... without any delay look @ foreign interest counters ....

(high liquidity , good management, profitability, future positioning, mkt leaders.......)

good luck

bandara 123 wrote:Guess it.

Look @ the foreing buying. Friends locals alone can't take this market from 4850 levels to close to 6000 levels. it was the foreign factor. for this week alone net foreign inflow tops 1.0bn mark.



NEXT week will be a .......... without any delay look @ foreign interest counters ....

(high liquidity , good management, profitability, future positioning, mkt leaders.......)

good luck

My next round of foreign interest counters are Expolanka, RICH.

How about PLC for an example. Just look @ their top 20 list. I mean as a pick for foreigners. even last week they were in the top buying list for this counter.

bandara 123 wrote:Guess it.

Look @ the foreing buying. Friends locals alone can't take this market from 4850 levels to close to 6000 levels. it was the foreign factor. for this week alone net foreign inflow tops 1.0bn mark.

As per the news circles still lot of foreign buying on the pipe line for the counters like ..............you should know by now what are the favorite picks of foreigners.

Just check the YTD net foreign buying. All the crazy selling ( Our people thought this will be the end of CSE - who have limited knowledge about mkt behaviour)of locals comfortably absorb by the foreigners.

NEXT week will be a .......... without any delay look @ foreign interest counters ....

(high liquidity , good management, profitability, future positioning, mkt leaders.......)

good luck

Dear Mr. Bandara,

I am glad to read your writing.
This is the phenomenon most of the people could not see few months ago. Even Now some people cannot understand this.
Some says this rise is too much. Inexperienced people measure the value of the shares by current prices. We know when humans gain experience they change their tools and systems.

While many people were made blind with Negative Gossips and Mafia Talks, HNWI and experienced people collected good shares at unexpected bargain prices.

I converted all possible cash into shares between June and August. We knew that when ASI slides to 4700s and huge foreign inflow filling our pockets no one with fare knowledge of Stock business should wait any more.

At least now we should know, 30 billion rupees came to us during last 10 months and money is still coming . We should start worrying when we sniff money going out from us. ( AS we saw in late 2010)


( These things are explained in detail in the book - Untold facts and myths of our Stock Market - I am writing this in Sinhala language. I hope to publish it in English also with the help of my co-writer who is competent in English. )


Note : Here I used the term : "Experienced people"
Pl note that, many years ago these "experienced people" were the newcomers at that time , did many mistakes in their journey to become what they are now.

Chinwi :-Pl note that, many years ago these "experienced people" were the newcomers at that time , did many mistakes in their journey to become what they are now.

Exactly right and You are really humble enough to say this but most of them act as born - experts.

A thread with good topic to contribute, forces me jot down my point of view as follows : I think SEC sponsored more TV and Printed media programs on equity market should encourage so the local mass get informed and educated themselves. When Foreigners pumped their funds to the CSE, only few of us had the confidence and understood their logic with the market as the majority local mass were brainstormed by garbage and negative information on rumors and gossips. The second factor, I think the local mass should learn and believe in long term investments ( How to manage a portfolio by proportioning long term holding and swing tradings ) If the local mass believing only short term gains, God Bless Sri Lanka .. !

Good Morning friends,

One more thing. share trading is an art. It is for long term investment. Not for short term gambling. But most of sri lankans are of the view that the shares are their to take quick bucks. Thats where our fellows ended up in making losses instead of making profits. Just look @ our mkt some of our so called investors sold shares like CFLB - For Rs 22/, GRAN - For Rs 58/, SAMP For Rs 180, COMB - For Rs 92, PLC For Rs 10.9 etc... etc...These shares were mkt leaders in their sectors. Even for a SEC matter or for a political matter no body in the world who has a sound knowledge in trading never expect to sell thoese shares at that levels.DPL coming from Rs 120 levels to Rs 10 levels were on the cards and was expected. ( as per their reported financials). but not the shares i mentioned earlier.

before putting your hard earned cash to the mkt you should know at least basics of share trading,

01. how to read a P & L , a cash flow statement ,
02. fundamental value of a share.
03. their sector, future of the company, managemnt,
04. liquidity, mkt behaviour etc........

Don't be a person " Yanne koheda malle pol" trading is like "Danagana giyoth katharagama nodana giyoth atharamaga"

Just look what you are doing and try be a pro active person rather than a reactive person.

[quote="Chinwi"]

bandara 123 wrote:Guess it.



Dear Mr. Bandara,

I am glad to read your writing.
This is the phenomenon most of the people could not see few months ago. Even Now some people cannot understand this.
Some says this rise is too much. Inexperienced people measure the value of the shares by current prices. We know when humans gain experience they change their tools and systems.

While many people were made blind with Negative Gossips and Mafia Talks, HNWI and experienced people collected good shares at unexpected bargain prices.

I converted all possible cash into shares between June and August. We knew that when ASI slides to 4700s and huge foreign inflow filling our pockets no one with fare knowledge of Stock business should wait any more.

At least now we should know, 30 billion rupees came to us during last 10 months and money is still coming . We should start worrying when we sniff money going out from us. ( AS we saw in late 2010)


( These things are explained in detail in the book - Untold facts and myths of our Stock Market - I am writing this in Sinhala language. I hope to publish it in English also with the help of my co-writer who is competent in English. )


Note : Here I used the term : "Experienced people"
Pl note that, many years ago these "experienced people" were the newcomers at that time , did many mistakes in their journey to become what they are now.

thank you chinwi.

@Chinwi: Hats off to you! (again)

I sure hope you are right about this (although, I don't bind you to your view, if the market goes south, I won't be blaming you)

Cheers!

Thanks bandara and Chinwi. Your vision is almost matches with my strategy. Srilankas always tend to be panic either rise or drain in the stock market. sometimes they dont expect when downtrend has started but same time they dont really grab if up trend is started. It is like we blame if it is rain or not.

by the way in this game, i didnt really found any wise investors left the market with losses. Please refer most of the blue chips which performed outstanding in last 10 years. Im here attaching SAMP 10 year diluted graph. Think what if you have invest 100k by then

Dear Chinwi,

Looking forward to read your book with two and half decades of experience in CSE
It will be a great guide for the Sinhala/English investors for sure

And this Bandara sounds like one of our good old friends
What u say?

bandara 123 wrote:Guess it.

Look @ the foreing buying. Friends locals alone can't take this market from 4850 levels to close to 6000 levels. it was the foreign factor. for this week alone net foreign inflow tops 1.0bn mark.

As per the news circles still lot of foreign buying on the pipe line for the counters like ..............you should know by now what are the favorite picks of foreigners.

Just check the YTD net foreign buying. All the crazy selling ( Our people thought this will be the end of CSE - who have limited knowledge about mkt behaviour)of locals comfortably absorb by the foreigners.

NEXT week will be a .......... without any delay look @ foreign interest counters ....

(high liquidity , good management, profitability, future positioning, mkt leaders.......)

good luck

I too agree with your point that locals can't carry the ASI alone to this height. Also, Locals won't let it to stable as we experienced during last two weeks. The day market went down(may be due to selling pressure) it ended flat(less than 2 points went down) without showing big red gap.
Though the ASI went down from 7800 levels, most of the companies showed massive profits throughout. Therefore, there is a good chance of passing this mark with the help of foreign investments.

I do not know how many times I iterated during June/July that most shares were over-corrected and to collect slowly. There was so much negativity here and due to that am not sure how many even noticed what I said below,

June 3rd just before the lowest ASI
http://forum.srilankaequity.com/t18599-next-week-more-buying-or-more-selling#121208

http://forum.srilankaequity.com/t19816-some-thoughts-on-cse-market-situation-at-present
http://forum.srilankaequity.com/t19939-good-shares-time-to-analyze-and-post-findings-open-invitation-to-all

Again I am not saying the current trend will continue for ever. That would be crazy. At the end of this run there can be even a steep correction and some consolidation. Consolidation can go for a few weeks to months. Sept results also will be awaited. But I certainly see no reason why market shoudl even fall back closer to ASI 5000. Even 5400 should be a strong support too. Current trend looks strong and collections in most share were good.

Anyway I could be proved wrong as I don;t control the panic seller. If they do come, i know what I will be doing.

stumpy wrote:Dear Chinwi,

And this Bandara sounds like one of our good old friends
What u say?

Yes. The way he analyze is very familiar.