Lets look at the Positive Side

Yesterday, when I called my broker in the morning the ASI was down 105 points and he said some of their clients have sold off their entire portfolios.It could be same with other brokers too.A part of the portfolios that investors are disposing could be shares purchased on credit. If this continues most of the credit purchases with brokers would be cleared much before 30th September. Therefore the 30th September 25% credit clearence issue would not be an issue at all. Also the market showed strength towards end of the days trading and there seems to be strong support at ASI 6500 level.
Also, Sri Lanka is one of the best places to live right now.There is peace and economy is looking up. We have been protected from natural disasters and there is infrastructure development taking place around the Country.
I see a bright future for the country and the CSE too should perform very well once it tides over the present market correction.
Therefore, in my view we should think twice before selling off the valuable shares we have in our portfolios.

All the market there will be small down turn. however if medium and long run there will be a good positive growth ... since the GDP going above 7-9% there will be a good potential to grow the market too....

sajeethk wrote:All the market there will be small down turn. however if medium and long run there will be a good positive growth ... since the GDP going above 7-9% there will be a good potential to grow the market too....

Exactly.As you mention the GDP is at a very good level.There are also so many other positive indicators.We have to learn to be patient.We put money in fixed depsits at 6-7% annual interest and wait for one year without any complaints.Why cant we hold on to our share investements at least 6-12 months.The return could be even 100% depending on the shares we invest.

early wrote:Yesterday, when I called my broker in the morning the ASI was down 105 points and he said some of their clients have sold off their entire portfolios.It could be same with other brokers too.A part of the portfolios that investors are disposing could be shares purchased on credit. If this continues most of the credit purchases with brokers would be cleared much before 30th September. Therefore the 30th September 25% credit clearence issue would not be an issue at all. Also the market showed strength towards end of the days trading and there seems to be strong support at ASI 6500 level.
Also, Sri Lanka is one of the best places to live right now.There is peace and economy is looking up. We have been protected from natural disasters and there is infrastructure development taking place around the Country.
I see a bright future for the country and the CSE too should perform very well once it tides over the present market correction.
Therefore, in my view we should think twice before selling off the valuable shares we have in our portfolios.

I think the clients who are selling their full portfolio must be the people who don't have the holding power. Many invest in the market to get the gain in limited time. They have different reasons.. for example some people invest full of his saving for to build the house and to get good profit soon for his dream. so he does not like to wait. (i saw many posts like that in this forum).. so they cannot hold.. I think those type of people are leaving the market. These are the people who is going behind the rallies to become rich..double their money with in one day.. Actually we cannot call them investors..They will not think about the value of the share.. The real investors will stay in the market. They know what they are buying ..went to exit.. no rush..

@ Majula

I personally believe that people who invest in CSE should look to have a balance between long term and short term.
With its past two years behavior, we all expect CSE to make our dreams come true in days….But this time though we all have to get there the hard way.

manula wrote:

early wrote:Yesterday, when I called my broker in the morning the ASI was down 105 points and he said some of their clients have sold off their entire portfolios.It could be same with other brokers too.A part of the portfolios that investors are disposing could be shares purchased on credit. If this continues most of the credit purchases with brokers would be cleared much before 30th September. Therefore the 30th September 25% credit clearence issue would not be an issue at all. Also the market showed strength towards end of the days trading and there seems to be strong support at ASI 6500 level.
Also, Sri Lanka is one of the best places to live right now.There is peace and economy is looking up. We have been protected from natural disasters and there is infrastructure development taking place around the Country.
I see a bright future for the country and the CSE too should perform very well once it tides over the present market correction.
Therefore, in my view we should think twice before selling off the valuable shares we have in our portfolios.

I think the clients who are selling their full portfolio must be the people who don't have the holding power. Many invest in the market to get the gain in limited time. They have different reasons.. for example some people invest full of his saving for to build the house and to get good profit soon for his dream. so he does not like to wait. (i saw many posts like that in this forum).. so they cannot hold.. I think those type of people are leaving the market. These are the people who is going behind the rallies to become rich..double their money with in one day.. Actually we cannot call them investors..They will not think about the value of the share.. The real investors will stay in the market. They know what they are buying ..went to exit.. no rush..

I think you are in confusion. Those who are selling are not only the people who do not have the holding power.
It depends on yr view of the market at any given point in relation to a timeframe.
If one thinks that he can buy back the same shares sometime later at lower levels or
identifies a better alternative then he is very much justified in selling.
Alternatively there are other people who just keep on holding onto shares waiting for the market to improve.
This is what a market is. So many different people. You cannot call others are not investors and call them names just because they are not doing same as you.
Can understand ur worry because the losses suffered due to the market condition now.
But, then the market perception right now seems to be of a weaker market at least in the near future.
Buy and hold may be a good policy for some while for others may act according to their perception of the market in their given situation.
Market is the sum total of all these different views.

manula wrote:

early wrote:Yesterday, when I called my broker in the morning the ASI was down 105 points and he said some of their clients have sold off their entire portfolios.It could be same with other brokers too.A part of the portfolios that investors are disposing could be shares purchased on credit. If this continues most of the credit purchases with brokers would be cleared much before 30th September. Therefore the 30th September 25% credit clearence issue would not be an issue at all. Also the market showed strength towards end of the days trading and there seems to be strong support at ASI 6500 level.
Also, Sri Lanka is one of the best places to live right now.There is peace and economy is looking up. We have been protected from natural disasters and there is infrastructure development taking place around the Country.
I see a bright future for the country and the CSE too should perform very well once it tides over the present market correction.
Therefore, in my view we should think twice before selling off the valuable shares we have in our portfolios.

I think the clients who are selling their full portfolio must be the people who don't have the holding power. Many invest in the market to get the gain in limited time. They have different reasons.. for example some people invest full of his saving for to build the house and to get good profit soon for his dream. so he does not like to wait. (i saw many posts like that in this forum).. so they cannot hold.. I think those type of people are leaving the market. These are the people who is going behind the rallies to become rich..double their money with in one day.. Actually we cannot call them investors..They will not think about the value of the share.. The real investors will stay in the market. They know what they are buying ..went to exit.. no rush..

Real investments take several months to give any benefits…. Stocks attract investments grow slowly step by step ….over several months ....investments and funds come to them time to time , ……what ever the investments made on them stay much longer than 5 days ,….. Investors do not expect profits and exit within few days……..all the investments do not take profits at the same time and exit …..Only few exit majority stay on a long term basis…..these stocks remain stable when the overall market is downwards...businesses continue to show outstanding profits…

early wrote:

sajeethk wrote:All the market there will be small down turn. however if medium and long run there will be a good positive growth ... since the GDP going above 7-9% there will be a good potential to grow the market too....

Exactly.As you mention the GDP is at a very good level.There are also so many other positive indicators.We have to learn to be patient.We put money in fixed depsits at 6-7% annual interest and wait for one year without any complaints.Why cant we hold on to our share investements at least 6-12 months.The return could be even 100% depending on the shares we invest.

Most of those stocks remained green on Friday seem to be stable, there may be a few speculative counters among them, faint heated and panic driven stocks were all sold out, and solid investment based stocks remained strong last week. Friday ended up with an upward movement, long-term investments might return to CSE Monday onwards.

Agree with you shareshares.Presntly the market does not offer much for speculative trading.Only very skillful traders like some of the experts of this forum would be able to take the risk and make a gain in these market conditions. On the other hand solid investement based stocks are looking extrmely attractive, and as you mention, many investors may start to take mid - long term positions on these shares from Monday onwards.

early wrote:Yesterday, when I called my broker in the morning the ASI was down 105 points and he said some of their clients have sold off their entire portfolios.It could be same with other brokers too.A part of the portfolios that investors are disposing could be shares purchased on credit. If this continues most of the credit purchases with brokers would be cleared much before 30th September. Therefore the 30th September 25% credit clearence issue would not be an issue at all. Also the market showed strength towards end of the days trading and there seems to be strong support at ASI 6500 level.
Also, Sri Lanka is one of the best places to live right now.There is peace and economy is looking up. We have been protected from natural disasters and there is infrastructure development taking place around the Country.
I see a bright future for the country and the CSE too should perform very well once it tides over the present market correction.
Therefore, in my view we should think twice before selling off the valuable shares we have in our portfolios.

If you think few days even few weeks of selling can clear the accumulated credit, then some government funds could have easily cleared out the credit. These days what brokers are doing hard is trying to control the 50% of the mountain not from growing further.

Hi friends,

When I ask about this downfall my broker used to say people buy without money and later selling at any price.

May be he is correct. Some are buying hoping the market will go up within 3-5 days and ending up with forced selling. In the meantime, some get panic and sold of their entire portfolio. Persons realized this few months ago exit with cash and now hunting slowly and steadily; also institutions and persons who have cash always.

Anyway, most of the retailers got affected badly.

I also wanted some cash for something to spend on. Now, I've got a loan for this matter and will not withdraw from my portfolio. When things become better I will settle the loan by selling some shares.

We'll hope for a better tomorrow.