The following was something I wrote in last week of November about the market sentiment and future behavior. The timing of the activities have been advanced from January to December and the overall BULL sentiment looks to continue in CSE together with following KEY POSITIVE ITEMS driving the overall market towards 7,500 by Feb ~ March 2021 with periodical corrections which can last for few days in CSE. Do observe the pattern of prices of selected counters.
Good Luck
Hi all,
The overall market is slightly pushed in to a INVESTOR SIDELINES SENTIMENT with the Christmas Season is on the cards. However, CSE can uptick sharply in the month of January 2021 with incremental collection starting from 2~3 week of December 2020. The following are some of the expectations.
End November - Broker credit clearance may dampen the ASI a bit
Early December - Slow momentum in CSE where many stock brokers will be on the sidelines as MOST OF THE STOCK BROKERS have ACHIEVED THE FULL YEAR TARGETS
End December - Investors may chase FUNDMENTALLY STRONG STOCKS which can DELIVER STRONG EARNINGS in 3Q20
Early January - STOCK BROKERS may also start picking up FUNDMENTALLY STRONG STOCKS which can DELIVER STRONG EARNINGS in 3Q20
Why CSE should run starting in the month of January 2021
Most of the companies have delivered STRONG FINANCIALS in 2Q20 better than expected in where everyone can safely EXPECT IMPRESSIVE FINANCIALS in 3Q20.
Strong BUSINESS FRIENDLY and POLICY CONSISTENT BUDGET PROPOSALS helping businesses to BOOST INVESTMENTS in sectors like Agriculture[CIC | AGST], livestock [CIC | TAFL | GRAN | LMF ], pharma [CIC | HEMAS] , logistics [EXPO], leisure [SPEN | AHUN], Manufacturing [TKYO | RCL | PARQ | LWL , CIND], Construction [AEL], Exports [HAYC | DIPD], etc. The COMPANIES in these sectors will be able to deliver STRONG GROWTH in YEARS to come
Enforcing of Port City Law which is LARGEST EVER INVESTMENT opportunity offered by Sri Lanka in the month of January 2021. This may be change the Game Plan of many companies in the construction, logistics, leisure and entertainment, financial services. [TKYO | RCL | LWL | CIND]
Hope of C19 threat to be eliminated from the early 2022 GLOBALLY with a successful vaccine during 1Q21. C19 VACCINE will become the WORLD's BIGGEST EVER LOGISTIC OPPORTUNITY in 2021 and AIR CARGO PROVIDERS are PREPARING to TAKE THAT OPPORTUNITY. Sri Lankan companies in GLOBAL AIR CARGO BUSINESS also will BENEFIT LARGELY with this MASSIVE OPPORTUNITY [EXPO]
Hints of CHINESE INVESTMENTS in CSE. This was sensed when honorable President REQUESTING THE CHINESES AMBASODOR "We need INVESTMENTS[FDIs + Equity] not LOANS". Chinese have invested in INDIAN STOCK MARKET and normally the CHINESE INVESTMENTS takes place by evaluating REGIONAL opportunity outlook.
Very low MARKET PE of 10 which is extremely low compared to similar FRONTIER/EMERGING market market PEs which sometimes are higher more than 16. [COMB 100 | LFIN 180 | VFIN 90 | LOLC 170]
Low interest rate of 4% ~ 5% p.a. offered by the Banks
ALERT - INCREMENTAL COLLECTION of VALUE GEMS in CSE is the KEY for SUPER NORMAL GAINS during the month of DECEMBER
Good Luck
COURTESY OF 'ONTHEMONEY'