The new capital brought in by the 1:1 bonus shares of Druk PNB Bank Ltd increased BSI to 1,404.10 from 1,289.88 points.

RSEBL changed the trading price band from ±5% to ±15%. I was worried if this action won’t lead to massive price manipulations by big investors.

DWAL issued Nu. 400 millions corporate bonds of 10 years. A reserve will be created for the purpose of this bond redemption.

Creating such reserve is losing potential dividends for shareholders in the short-term as it reduces the distributable profit.

We can read 2023 first half year’s financial reports of the companies from the website of RSEBL.

Keeping them aside, let us see how was the performance of Bhutan stock market, and my portfolio and trades.

How Was the Stock Market of Bhutan?

Total Trade Value

The total trade value of the Bhutan stock market for the month of August is Nu. 34.73 millions. Nu. 17.63M is an m-CaMS trade and Nu. 17.10M is an OTC trade.

This month, OTC and m-CaMs trades are almost equal with difference of just Nu. 0.10M. The total OTC trade is 49.3% of the total trade.

226 users traded shares via m-CaMS whereas 134 users traded over the counter (OTC).

Benchmark Index

Bhutan Stock Index (BSI) started at 1,289.88 points. The bonus shares of DPNB increased it to 1,404.10 points.

Our benchmark index showed upward trend this month. It increased first week, and remained flat in the second week.

The maximum decline was from 18-22nd losing 10.86 points. However, it bounced back. It closed at 1,422.88 but lost 18.78 points.

Individual Stocks

When we look at an overall stock market trade value, it showed low trade volume. But most of the tickers were active.

This month, majority of the counters are in green. BCCL and BFAL gained but it’s due to internal transfer. They were not traded in the secondary market.

PCAL gained with the release of its half-yearly provisional report showing revenue increases. SVL traded at face value!

Did I Make Changes in Total Holdings?

BUY

I made total purchases of Nu. 16,306.45. Just like last month all addition was in TBL and DWAL.

It was 100 shares of DWAL at Nu.143.45 and 50 of TBL at Nu.36.00. It is to use sales of KCL shares.

SELL

In July month, I sold all the holdings in SVL and BBPL. This month, I sold off all holdings in KCL.

There are still 11 tickers in my stock portfolio. I’ll sell few more to justify a realistic diversification.

How CD’s Stock Portfolio Performed?

This month, 50% of the tickers in my portfolio are down in red and 50% of them are in green.

The unrealized profit this month is Nu. 466,041.55 and unrealized loss of Nu. 30,608.90.

The above graph represents monthly net unrealized profit. This time it is the highest record.

The Month’s Lessons & Future Plans?

If you purchased the shares of BNBL and RICBL during 2021 auction, you are still in loss.

Luckily, I didn’t purchase during the auction looking at the level of bullish sentiments.

Looking at the sale volume of DPNB shares, I think the same situation is likely to happen with it as well.

DPNB needs to prove it is worth holding with better earnings. Otherwise, people will probably keep on selling.

Unless I have multi-millions to invest, I think it won’t be a very good idea to invest during auctions.

How was your stock portfolio in Aug? Did it keep up your expectations? What is one thing you did this month? 

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