20/04/2010 (S.L.S.Picks) – Colombo Stock Market continues its upward momentum today as well despite some profit taking by the investors. Mr. Ranjan Hulugalle, Director of equities at First Guardian securities said in an interview with Bloomberg Television that the All Share Price Index of the Colombo Stock Market may rise to 5000 points level by end of 2010.
All Share Price Index was up by 7.01% to close at record 4022.37 levels & the Millanka Price Index was up by 3.69% to close at 4579.79.
Turnover for the day was Rs 1.8b.n. Supported by the retail investors, High net worth investors, & Institutional investors.
Foreign participation was at a low level. Foreigners purchased Rs 96m.n. & sold shares worth of Rs 555m.n. reflecting a net foreign out flow of Rs 458m.n.
Services, Plantations & IT sector rose by 5.20%, 4.81% & 4.54% respectively. However Hotels & Travels sector suffered a blow today due to some profit taking in the hotel sector companies. John Keels Hotels attracted investor interest in today’s trading session as well. The share closed at Rs 21.75 down by .25 cents after hitting Rs 23.00 during mid trading session.
There were 80 gainers as against 74 losers.
- Central Bank of Sri Lanka has forecast a 6.5 % economic growth for the country in year 2010.
- Stable government to adopt consistent economic policies in the country.
- Expected boom in the Tourism sector in future. Tourist arrivals to the country has increased after the end of 30 year old civil war & already recorded a 50.3% growth so far for the year 2010. ( JAN - MARCH).
- The Economic growth in future is expected to be well supported by the development activities in the Construction & the Agricultural sectors as well.
- Sri Lanka Share Market (Colombo Stock Exchange) ranked No 01 in Asia & second best in the world in 2009. We are the best performing stock exchange in Asia so far for year 2010.
- Announcement of the holding an Indian film festival in Sri Lanka will boost the hotels sector.
- Touchwood company announced the long awaited dates for its rights issue. The share price has appreciated by 9.57% to close at Rs 126.00 up by Rs 11.00 today.It peaked to Rs 131.50 after the announcement of the dates today. We believe that there will be trading opportunities in this share during the next couple of days.
- Plantations sector rose by 4.81% due to the price appreciations in almost all the plantation companies.However there will be more opportunities for Rubber Plantation companies & the companies which have better crop mix (Tea + Rubber + Oil palm) such as Agalawatta plantations, Malwatte Plantations,Kotagala Plantations etc..
STOCKS TO WATCH
- Commercial Bank (X)
source - www.cse.lk