22/04/2010 (S.L.S.Picks) – Sri Lanka stock Market continues its upward momentum & reported further gains today on back of Earnings expectations, Plantation recovery, Boom in the tourist arrivals, Political stability in the country etc.. Upward momentum was supported by the buying interest from retail investors, High net worth individuals & Institutional investors.
All share price index rose by 38.66 points to close at 4077.55 & more liquid Millanka index was rose by 57.30 points to close at 4676.78.
Turnover for the day was Rs 2.2b.n
Foreigners purchased shares to the tune of Rs 591m.n. & sold shares to the tune of Rs 812m.n. reflecting a net foreign out flow of Rs 221 for the day.
Beverage food & Tobacco sector index rose by 5.34% due to the price appreciation of Ceylon Tobacco Company, followed by trading sector due to the share 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.
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 & through trading activities. They are yet to receive the full benefit of the end of 30 year old civil war in our country.
There were 76 gainers as against 75 losers today.
- There were several large crossings of Hotel Services took place today & yesterday.
- Overall market activities remain bullish on back of strong political stability in the country & expectation of positive company earnings.
- National Development Bank has not moved up from its resistance level of Rs 220.00 for the past several weeks. NDB being one of best picks & one of fundamentally sound stocks in the Colombo Stock Exchange has a strong upside potential in medium to long term.
STOCKS TO WATCH
- Singer Sri Lanka
- Richard Pieris & Company
- Seylan Bank(X)