Srilankan stock market

Srilankan stock market is currently at a very bulish sentiment. Blue chips companies are moving up very fast. Many bluechips companies are triding more than 100% over the book value. The reason is may be the, market liquidity and per share price traiding over 1 dollar. As a result foreigners will get attracted towards those kind of stocks. But for local investors there are so many undervalued stocks over the board in the CSE. Specially in land and manufacturing sectors. As I predicted earlier in the crisis situation time, “investors, there is nothing to be panic. You can have a wonderfull christmas season time and also in year 2009 3^RD quarter  interest rates and inflation can come down to single digit”. These two predictions has become a reality. Sometimes few unqualified important figures in the industry can hurt your market sentiment very badly giving wrong information and negative feelings to investors. Best nearest example is MR.rajarathnam factor. He got caught for inside dealing offence in USA. Some srilankan unqualified important figures spread negative rumors and brought  down the market 10% within 2 days. I said in my website that the rajarathnam factor dosent affect the CSE market and don’t kill by your self. And it has already happened. His holding cross over to other parties without hurting market price or sentiment. According to human law, purchasing power can be won everytime. But that’s not the reality. So we have to be smart to analyse the situation what is happening realy In the market, in that situation.

These days srilankan society is facing a presidential election. According to world politics and power struggle one side needs peaceful countries and powerfull economy in the asian region.  And the other side wants to destroy peace and economy in the asian continent. As a srilankan we have to undestand whats the real happening in these days. I personally believe in the past 30 years dark period srilankan land and society suffered a terible  experience. because of the terrorist conflict. According to the universal law, nature will provide us what we lost in the past 30 years and give us with bonus also. That means peace and harmony, prosperity, development and identity to the nation.

In year 2010 1^ST quarter we will face 2 elections and will get political stability. And country will leaverage economic development, infrastructure development, within next 3-5 years. If the country is going to be developing it means gradually foreign funds will absorb towars the economy at the same time, srilanka will stablish law and order and will reduce waistages (corruptions). At the same time srilankan stock market can move up over 6000 level. But we will have to face technical corrections and profit taking situations. CSE long term trend is upward. In these days if anyone lost the ground, if he can have holding power, he can get off from his investment with profit within 90 days.