Sri Lanka Stock Picks

Sri Lanka stock picks site has been developed to give first hand information with regard to share trading opportunities available for investors who do not like go through lengthy research reports, calculations,etc but to have a clear idea about stocks that have future up side potential.Our service is just not for day traders but for the investors who wish to see their money growing in the long run.Our main objective is to provide information relating to trading under one roof.

Tuesday, March 16, 2010

SRI LANKA - COLOMBO MARKET WAS DOWN BY 1.51%, FOREIGNERS WERE NET BUYERS.

DAILY MARKET REVIEW

16/03/2010 - Colombo Stock Market was down by 58.05 points & the more liquid Milanka price index was down by 100.27 points to close at 4339.34.This downward trend was mainly due to the result of the substantial price drop in KHL rights followed by the KHL share.The downward trend continues across the board afterward.

Today JKH the main share holder of the KHL sold 150 m.n. rights of khl @ Rs 5.00/right,which resulted a transaction of Rs 750 m.n. JKH further stated that they intends to subscribe for the remaining rights amounting to 187.4 m.n. shares in KHL. After subscription of these rights Holding in KHL by the JKH limited to 82.4%. as per the report submitted to CSE by the JKH.

We believe that this decision made by the parent company to sell part of it's rights entitlement without subscribing to the issue was a very positive move.This decision would help to maintain the growth momentum of the KHL share price after completion of the rights issue in future.Other wise KHL share would be another LITE [where the parent company subscribe to the rights issue & start gradually selling of converted shares in the market.]if this had not happened today.

The most encouraging factor in today's trading was the net foreign inflow of Rs 56 m.n. Foreigners purchased shares to the value of Rs 406 m.n. & sold shares to the value of Rs 350 m.n.

The turnover for the day was Rs 2.1 b.n.

There were 40 positive contributors as against 99 negative contributors in the market.

The Services sector was leading the sectors in terms of growth by reporting an improvement of 7.5% followed by Banking & finance sector. All other sectors reported negative growth today.

Ceylon tea brokers commenced trading at CSE & closed at Rs 4.50,after reaching high of Rs 5.25 in a mid day trading session.

TOP FIVE GAINERS FOR THE DAY TOP FIVE LOSERS FOR THE DAY

LARGE VOLUMES TRADED

ANNUAL REPORTS AS AT 31/12/2009

CROSSINGS FOR THE DAY

CLOSER LOOK

Today the investors had a chance of purchasing the Rights of one of Sri lanka's valued hotel sector companies KHL @ a bargain price around Rs 5.00.

The investors who purchased rights will have to pay Rs 10.00 each per right to convert it to a share.Most importantly they will be able to get a return of over 100 % in the longer run from the KHL share,which cost them only Rs 15.00 - Rs 16.00,who purchased KHL rights between Rs 5.00 - Rs 6.00. today.The closing price of the KHL right was Rs 13.75 on 15/03/2010.

Market was attractive today due to the lower share prices of several companies & bargain hunters were busy in collecting these shares. AGAL down to Rs 28.25 , BALA down to Rs 25.25 & closed at Rs 30.75, GREG down to Rs 255 & closed at Rs 257.50, SERV down to Rs 25.75,JINS was down to Rs 14.50 ,KHL share down to Rs 17.00 & closed at Rs 18.75 ,CFLB was down to Rs 62.75, TWOD down to Rs 105.50 etc.

High volumes traded in the JKH was a positive factor.

Even though AGAL reported a negative growth for the financial year 2009 the last quarter [Dec 2009] figures were attractive.They reported a profit of Rs 73,787 for the last quarter 2009 as against a loss of Rs (16,954) reported for the same period in 2008.

We strongly believe that the market should recover tomorrow on back of positive company earnings reported,increased tourist arrivals,improved prices fetched for Rubber, Tea & Oil palm in the world market etc...