26/04/2010(S.L.S.Picks) – Sky is the limit for Colombo Stock Exchange. Sri Lanka’s only stock exchange – Colombo Stock Exchange continues its upward momentum on start of a fresh day of trading today.
Many were of the view that the Colombo Market was overheated even two or three months back purely on fundamental basis. This was due to the fact that the All Share Price index & Millanka Price index recorded its upward movement continuously. But many were failed to understand that the upward movement of the All Share price index & Millanka price index were largely backed by the massive price appreciation of the Environmental Resource investment company which has a high weight age over the index values. During the latter part of the year 2009 Environmental Resource Investment share traded around Rs 30.00 – 35.00 levels & it appreciated staggering 800% increase during this year by recording its highest ever price of Rs 275.00/share.(Before the rights issue )
We strongly believe that if this bullish trend continues in future months Colombo Stock Exchange would pass 5000 mark by end of year 2010.
All Share Price index was up by 14.41 points to close at 4136.05 & Millanka Price index was up by 7.73% to close at 4703.56. Hotels & Plantation company shares attracted investor interest. (This was reported continuously by us through our daily market reports & through our special business news articles)
Turnover reported for the day was Rs 1.6b.n
Foreign purchases were Rs 350m.n. & foreign sales were flat at Rs 365m.n. Net foreign outflow for the day was Rs 15m.n.
The Foot Ware & Textile sector reported 8.98% increase & was in the top of the list due to the price appreciation of Ceylon Leather Products, followed by the Investment Trust sector due to the share price appreciation of Environmental Resources Investment Company. Telecom sector reported to be the leading sector in the negative performers list.
There were 94 positive contributors as against 48 negative contributors.
POSITIVE OUT LOOK
- 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.
- Expected positive earnings by the listed companies in future.
- Seven out of ten companies in the today's top gainers list recorded more than 10% price appreciation for the day, with Amana Thakaful Insurance company & Ceylon Leather Product company reporting staggering 86% & 28% price appreciation respectively for the day.
- Environmental Resources Investment company share price start to pick up once again after closing of its rights issue dates.
- Companies which have more relation to the future growth sectors such as Plantations, Constructions,Trading etc. will have a great future.
STOCKS TO WATCH
- Seylan Bank(X)
- Lanka Ceramic (which has interests in the fields of Rubber Plantations through its subsidiary Horana Plantation , Other subsidiaries such as Lanka Waltiles & Lanka Tiles) The Ultimate holding company of Lanka Ceramic is Ceylon Theatres PLC.
- Agalawatta Plantations
- Kotagala Plantations
- Kelani Valley Plantations
- Elpitiya Plantations
- Balangoda Plantations
- John Keels Hotels
- Light House Hotel
- Kegalle Plantations
source - www.cse.lk