When PCAL announced right shares at 3:5 on 20th June, I wasn’t happy. I know how it will end up gradually.

Corporate action of such nature would dilute our holdings and then erode our unrealized profits.

I was observing the development and aiming to do a swing trade if it gets through, to take my profit unlike the case of DPNB Right Shares.

It took almost a month to get an approval by the Rights Issue Committee of Royal Monetary Authority of Bhutan.

PCAL share price went up as high as Nu.128. I sold all the lots purchased when the price was at Nu. 85 – fearful when others are greedy.

Let us keep that aside, and go through the performances of Bhutan Stock Market and my stock portfolio in July.

How Was the Stock Market of Bhutan?

Market Situations

This July, total market trades decreased by Nu.275M. The total trade was Nu.96M – 49% OTC and 51% mCaMs trades.

Benchmark Index

Bhutan Stock Index (BSI) started the month at a higher points of 1534.58 and ended at 1489.13 points.

BSI lost 45.45 points this month. It shows an overall bearish sentiment of the market during the month.

Individual Stocks

In Jul 2024, 13 counters ended down in red, 2 in green and 3 tickers didn’t change.

If we look at significant gainers / losers, RICB gained the most and BTCL lost the most.

Did I Make Changes in Total Holdings?

Tickers BUY

I don’t have an active regular income to invest in stock. I won’t invest the war chest fund as well for quite some time.

Tickers SALE

I sold 1,000 shares of PCAL at Nu. 119.50. Since bought this lot at Nu.85, the net profit is Nu.32,455.00

How CD’s Stock Portfolio Performed?

5 counters in my portfolio are below their purchase prices. But 3 of them are still positive. The biggest gainer is RICB.

The average purchase price of PCAL will change once I get the declared right shares.

This month’s unrealized profit is the lowest this year. The loss increased by about 5% this July.

The overall unrealized profit is 10.80% and the unrealized loss is 6.43% in the current market value.

The Month’s Lessons & Future Plans?

Just before the announcement of right issue, PCAL stock were trading at Nu.90. But it increased gradually and even reached Nu.128.

This means if someone has wad of idle cash, it makes more sense to do swing trade than entering for a long-term.

Nu.500,000 would have given more than Nu.200,000 returns within short period if you have done few swing trades.

When total unrealized profit keeps on shrinking, I am thinking if long-term investing in Bhutan stock market makes sense.

I am still in a long-term hold. However, sometimes I do get temptations of doing trades especially when there are such corporate actions.

How was your stock portfolio in July? Did it keep up your expectations? What’s your plan for next month?

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