23/04/2010 (S.L.S.Picks) –The Colombo Stock Market is up 21.7 percent so far this year, making it Asia's best-performing Stock Exchange & it has shot up over 177 percent since it hit a four-year low on Dec. 30, 2008, rising on optimism the island nation would end a 25-year as reported by the Reuters.
Sri Lanka stock Market continues its bull run for the fifth consecutive day & reported further gains today on back of Earnings expectations, Recovery in Plantations (both Rubber & Tea) due to the recovery of the world economy, Boom in the tourist arrivals, Political stability in the country etc.. (Go through our daily reports for the past several months).
Tourist arrivals to the country have already shows us a dramatic improvement after the end of 30 year old civil war in the country. This was evident from the latest profit figures released by two of leading listed hotels in the country.
All share price index rose by 44.09 points to close at 4121.64 & more liquid Millanka index was rose by 19.05 points to close at 4695.83
Turnover for the day was healthy Rs 1.7b.n
Foreigners purchased shares to the tune of Rs 94m.n. & sold shares to the tune of Rs 451m.n. reflecting a net foreign out flow of Rs 357m.n. for the day.
Trading sector index rose by 2.43% due to the price appreciation of Singer Sri Lanka, which is one time high dividend paying company as Chevron Lubricants, Nestle Lanka, Commercial Bank, Hatton National Bank etc in the Colombo Stock Exchange, followed by Manufacturing sector.
We expect Singer Sri Lanka to perform strongly in the future mainly due to their interests in the Agricultural sector, financial market through Singer Finance & trading activities. They are yet to receive the full benefit of the end of 30 year old civil war in our country.
Stores & Supplies sector was the worst performing sector today in the market with a decline of 2.16% due to the share price decline in E.B.Creasy & Company.
There were 110 gainers as against 45 losers today.
- Balangoda Plantations declared a First & Final Dividend of Rs 1.25.
- Light House hotel declared a final dividend of cents .50.
- Amana Takaful Insurance company declared a sub division of its ordinary shares (01 share into 10 shares)
- Light House hotel & Hunas Falls hotel has reported 102% & 1294% respectively increase in profitability for the last quarter ended 31/03.2010.
- Investor interest continues to the hotels sector companies.This sector would be in the forefront & would benefit mostly from the post war economic development activities in Sri Lanka.