Don't sell valuable shares to catchers..Look Reasons

1.Mr. Nimal perera told tomorrow  is normal trading day.Take my word.

2.Look same kind of situation related to  Nandakadu, same day INDEX  is  recovered.

3.Normally govt   planned school  holidays  for next week.  

4.Government is trying to play key role for CSE.

5.Invested companies are not effect to this type of    reason.

THINK TWICE  BEFORE SELLING..

I agree, I'm fairly optimistic about the situation because of the reasons you've stated above and also because we have gone through this and now we know that this situation wouldn't affect the companies as much. Also, foreigners are not as significant as they used to be, It's now all on us.

We'll most certainly see a dip in the morning which I believe would recover within the day itself.

I also believe most of us have already put in what we've got - but if possible, Buy when panic sellers and manipulators are selling. If not, watch the whole situation unfold and dont react. Remember, no matter how much the market dips, it would most certainly climb back to the current levels.

Cheers!

Hi all,


By looking at the sentiments in social media the following behaviors were observed.


1. How can I secure my profits?
2. How can I collect at low prices?
3. Can't I sell in the morning and buy at low?


The above feelings are common in general trading perspectives rather than investor thinking. As per my opinion, what we should ideally think as investors could be summarized as follows;


1. The magnitude of the COVID19 risk happened in Minuwangoda and other areas?
2. Any negative impact to the companies I have invested?
3. What companies will benefit, if the COVID19 spreads as a result of this?


I tried to find answers to above questions rather than thinking in a TRADER'S MINDSET. The following are the findings I found;


1. The magnitude of the Minuwangoda spread is relatively low when compared with the initial outbreak where the entire country was shut and all business activities had been disrupted. Sri Lanka has managed COVID risk effectively better than any other developed nation [First outbreak and probable second wave occurred]. Therefore, historical track record suggests that SL has necessary strategies to manage a probable third wave. However, there might hear market negative news sharing in next 2~3 days such as curfew impositions with identified locations, closing of schools, institutions, companies, etc. which could be considered as normal in a situation like this. All of these will push your limits whether to hold or sell shares at this juncture. Hence, there is not much to panic in this instance, instead BUY more as historical similar situations have recovered very quickly in CSE.


2. Assessing the impact of any COVID19 third wave to specific industries/companies, what I mainly observe are following. The companies in the following industries might experience further losses/cash flow issues if COVID19 spreads as a third wave across SL.


Hotels will further have to take the hit as the country may delay the opening of the air port


Banks once again would have to extend the moratorium extensions for selected industries hit with any possible third wave resulting more cash flow problems and non performing loans


3. We can highly trust and continue to have faith in the companies performed well during the COVID19 first wave period. For example, HAYC. DIPD and EXPO are the companies outperformed and exploited the opportunities better than any company in CSE, created by COVID first wave. Hence, we can further trust these companies to have more opportunities and exploit the opportunities far better than in the first wave with the learning curve. Hence, what I feel is above companies are COVID19 positively correlated companies. All other stocks which moved in CSE as a result of new Government policies or decisions taken favoring the industry as a whole.


Therefore, as investors we need to adopt to this new normal which we have to account the risk in our investment decisions. I strongly feel 95% of the population in the market would be thinking as TRDERS VIEW mentioned above. In summary, believe about the country to successfully manage this situation similarly as earlier and fill you buckets in large parcels with COVID positive companies and any other fundamentally valuable stocks more, if any PANIC SELLER wants to share his profit to you


Good Luck