Stock Market Invesments

Investment decision at Colombo Stock Exchange 

www.cse.lk

Investing in the share market is generally accepted to be profitable. However the risk is not totally avoidable and it does not occur always by chance. Therefore the investment decision should be made carefully to minimize the risk and maximize the profit. Following are the points to be considered before investing in the stock market.

Trade history

Trade history plays an important role in making decisions. Shares that continuously fluctuate largely have a good potential for short term investors they can buy during the lowest price and sell when reach the peak. All time highest and lowest price are another parameter. You can buy shares at its closest to the lowest and sell closest to the highest. However subdivisions, right issues and consolidations may affect the all time values. Past data on subdivisions, right issues etc. can be found under the announcements of each company on www.cse.lk

Twelve months trade history gives you a better understanding about the seasonal fluctuations.

Invest for IPOs

IPOs of well reputed companies have a good potential to rise several times than the initial price although it could be a gradual process. Further it does not involve broker fees. In Sri Lanka IPOs of the financial sector companies usually rise several times.

Higher dividends

Some companies pay higher dividend against the initial offering/listing price. CSE daily and weekly reports provide the dividend announcements and you have to own the share by XD date to be entitled for the dividends.  

Liquidity

Some shares had gone up to its maximum and liquidity is very low for the prices above. Avoid purchase of those shares unless you require them for something other than gaining profits.

Links to trade history

Trade history can be viewed by several stock information web sites

• www.cse.lk- shows a brief graph up to  for 12 months and  detailed history is available for charge
• www.colombo-stock-exchange.com provide a very user friendly history analyzing environment with sorting facilities and related news. http://www.colombo-stock-exchange.com/#!activePage