12/04/2010 – Colombo Stock Exchange reported a further gain today which is being the first day after the end of General Elections held on 08/04/2010 to elect the 14th parliament of Sri Lanka. This is the first general election held in this tiny beautiful country which is producing world famous “Ceylon Tea” after the end of 30 year old civil war. The ruling UPFA Government record a landslide victory at the polls.
ASI was up by 19.16 points to close at its history best 3958.78 & the more liquid Milanka price index was up by 17.57 points to close at 4542.56.
Turnover for the day was healthy Rs 1.7 b.n. which is supported by retail investors, high net worth individuals & institutional investors.
Foreigner’s participation was at moderate levels. Foreigners purchased shares to the value of Rs 523m.n. & sold Rs 663m.n. worth of shares reflecting a net outflow of Rs 140m.n.
Construction & Energy sector rose by 4.62% due to the price increase in Dockyard, Kapila heavy & Lankem Development shares, followed by Power & Energy sector.
The worst performing sector for the day was Investment Trust sector, due to the price decline in Environmental Resources Investment Company.
There were 93 positive gainers as against 45 negative contributors.
MARKET SNAP SHOT
CROSSINGS FOR THE DAY
- The crossings counter was represented by the shares of blue chip companies in the market ,which we believe is a very positive factor.
- We expect Colombo Stock market will deliver above average returns to the investors who invest in shares in the CSE in medium to long term.
- Mr S.Rajarathnam one of directors of Lankem Ceylon has purchased 20000/= Lankem Ceylon shares around Rs 70 levels. This is a positive development for the share of this company & we believe that the share price of Lankem Ceylon may go up in medium term.
- Seylan Bank.
- Richard Pieris & Company.
* 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 in the Construction & the Agricultural sectors as well. (Tea, Rubber & Palm oil )
* 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.