Just like in any other venture, especially one that involves money, it is only wise to have a strategy that enhances your chances to see your funds grow. Whenever you invest funds, you are delaying immediate consumption of the funds with the hope that at the point where you will choose to redeem the invested funds, they will be worth much higher than it was at investment point.
In order to position yourself for such hoped for gains, you need to adopt a number of strategies;
Get to understand the market
When getting into the market, make a point of visiting an investment advisor. Get to ask all you would wish to get to know about the market. Get to understand how prices move and what moves them, market trends, understanding the pricelist, get to know the market players and their different roles and appreciating the lingua. You will be putting your hard earned money into the stock and the worst thing would be to get into something you do not understand.
Information seeking is not unique to a new market entrant. Market participants should continue seeking relevant information through out their investment journey in order to ensure that they are making informed investment decisions at every point of their journey.
Wisely identify shares to invest in
Based on the information acquired you can now identify the shares to invest in. this will largely depend on a number of factors including;
§ The amount of funds being invested – are you investing a one off lump – sum or drip feeding your account with small but frequent deposits
§ The investment Horizon – How long are you looking to have the funds in the market
§ The risk threshold – What level of risks are you ready to take
Brokers, investment advisors and agents usually have a list of recommended shares at each point and, depending on your standing on the identified factors, you can then pick out what to go for.
Set Investment Targets
Determine a certain percentage that you would wish to earn on invested funds against which you will follow the growth of your funds. This should not be a fixed target but instead should only guide you on your investment growth. Should you then hit the target and the price is still uphill, then the wise thing to do would be to continue reaping from the appreciation. Remember however that it is completely impossible to tell with absolute certainty the point at which a price turnaround will be captured, and managing to sell at the highest point of a turn around is pure luck.
Do not hold out waiting for the price to continue appreciating only to have the price turnaround and start a quick slide as it usually happens once other shareholders get the panic sale syndrome.
Follow up on your investment
Once you put funds in any of the listed companies on the Stock Exchange you become a part owner of the company and as such, any information on the company being received on the market should concern you. Find out the company’s result announcement date, analyze the company’s performance against the previous period and other companies in the industry and follow up on the price movement.
Keep in constant touch with your broker or investment adviser. This way, you will be able to follow up on market support on your stocks and chances of possible price turnarounds and thus cash in on good entry and exit points.
MARKET REVIEW
The bourse is still grappling with teething problems after the implementation of the Automated Trading System as it witnessed delayed trading commencement and erratic price movements. Investors should now be cautious when putting in orders especially those being place at market rate and should seek proper guidance from their brokers when placing orders.
On the general price movement, Sasini has continued its appreciation having closed at Kshs 45, Kshs. 4 above the previous day’s price. Kenya airways regained its Kshs. 120 trading level as it averaged Kshs. 121. ICDC edged deeper into the Kshs.200 level to close at Kshs. 219 while Equity bank regained its appreciation to close a Kshs. 139. Bamburi maintained its gradual appreciation as it closed Kshs. 8 shy of Kshs 200, while E.A Cables slipped backwards Kshs. 94.50.
PERFORMANCE ANALYSIS
Mumias Sugar released their financial results for the year ended 30th over this week. The results reflected an 18.2% appreciation in net profit performance to a Kshs. 1.53 bn. up from the previous years Kshs. 1.3 bn. while net sales were up 15.6% to Kshs. 11.7 bn.
Directors proposed a final dividend of Kshs. 1.00 per share. This, when added to the earlier distributed interim dividend of Kshs. 0.75 brings the total dividend for the year to Kshs. 1.75, which is covered 1.7 times by the Kshs. 2.99 earnings per share.
The current trading price of Kshs. 58 puts the dividend yield at 3.02%. The company has a relatively high Pe ration of Kshs. 19.4 but well below the market average of 25.642 and the industry average of 25.22.
In order to position yourself for such hoped for gains, you need to adopt a number of strategies;
Get to understand the market
When getting into the market, make a point of visiting an investment advisor. Get to ask all you would wish to get to know about the market. Get to understand how prices move and what moves them, market trends, understanding the pricelist, get to know the market players and their different roles and appreciating the lingua. You will be putting your hard earned money into the stock and the worst thing would be to get into something you do not understand.
Information seeking is not unique to a new market entrant. Market participants should continue seeking relevant information through out their investment journey in order to ensure that they are making informed investment decisions at every point of their journey.
Wisely identify shares to invest in
Based on the information acquired you can now identify the shares to invest in. this will largely depend on a number of factors including;
§ The amount of funds being invested – are you investing a one off lump – sum or drip feeding your account with small but frequent deposits
§ The investment Horizon – How long are you looking to have the funds in the market
§ The risk threshold – What level of risks are you ready to take
Brokers, investment advisors and agents usually have a list of recommended shares at each point and, depending on your standing on the identified factors, you can then pick out what to go for.
Set Investment Targets
Determine a certain percentage that you would wish to earn on invested funds against which you will follow the growth of your funds. This should not be a fixed target but instead should only guide you on your investment growth. Should you then hit the target and the price is still uphill, then the wise thing to do would be to continue reaping from the appreciation. Remember however that it is completely impossible to tell with absolute certainty the point at which a price turnaround will be captured, and managing to sell at the highest point of a turn around is pure luck.
Do not hold out waiting for the price to continue appreciating only to have the price turnaround and start a quick slide as it usually happens once other shareholders get the panic sale syndrome.
Follow up on your investment
Once you put funds in any of the listed companies on the Stock Exchange you become a part owner of the company and as such, any information on the company being received on the market should concern you. Find out the company’s result announcement date, analyze the company’s performance against the previous period and other companies in the industry and follow up on the price movement.
Keep in constant touch with your broker or investment adviser. This way, you will be able to follow up on market support on your stocks and chances of possible price turnarounds and thus cash in on good entry and exit points.
MARKET REVIEW
The bourse is still grappling with teething problems after the implementation of the Automated Trading System as it witnessed delayed trading commencement and erratic price movements. Investors should now be cautious when putting in orders especially those being place at market rate and should seek proper guidance from their brokers when placing orders.
On the general price movement, Sasini has continued its appreciation having closed at Kshs 45, Kshs. 4 above the previous day’s price. Kenya airways regained its Kshs. 120 trading level as it averaged Kshs. 121. ICDC edged deeper into the Kshs.200 level to close at Kshs. 219 while Equity bank regained its appreciation to close a Kshs. 139. Bamburi maintained its gradual appreciation as it closed Kshs. 8 shy of Kshs 200, while E.A Cables slipped backwards Kshs. 94.50.
PERFORMANCE ANALYSIS
Mumias Sugar released their financial results for the year ended 30th over this week. The results reflected an 18.2% appreciation in net profit performance to a Kshs. 1.53 bn. up from the previous years Kshs. 1.3 bn. while net sales were up 15.6% to Kshs. 11.7 bn.
Directors proposed a final dividend of Kshs. 1.00 per share. This, when added to the earlier distributed interim dividend of Kshs. 0.75 brings the total dividend for the year to Kshs. 1.75, which is covered 1.7 times by the Kshs. 2.99 earnings per share.
The current trading price of Kshs. 58 puts the dividend yield at 3.02%. The company has a relatively high Pe ration of Kshs. 19.4 but well below the market average of 25.642 and the industry average of 25.22.
No comments:
Post a Comment