29/04/2010 (S.L.S.Picks) – Sri Lanka stock Market continues its bull run during today’s trading session as well after a drop in indies due to profit taking on 27/04/2010. Further growth in the market is expected 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.
All share price index rose by 20.54 points to close at 4155.00 & more liquid Millanka index was up by 0.41 points to close at 4695.39
Turnover for the day was healthy Rs 2.0b.n
Foreigners purchased shares to the tune of Rs 191m.n. & sold shares to the tune of Rs 805m.n. reflecting a net foreign out flow of Rs 614m.n. for the day. This was mainly due to the large transaction that took place in Overseas Reality (Ceylon).20m.n. worth of shares of OSEA changed hands today in the market.
There were 75 gainers as against 73 losers today.
- L.B.Finance declared an interim Dividend of Rs 5.00
- Aitken Spence PLC declared an interim dividend of Rs 3.50
- A large parcel of Overseas Reality Ceylon changed hands today. We expect OSEA to perform well in the future on back of the economic recovery in the country after the end of 30 year old civil war.
- Property sector PER is around 7 & the overall market PER is around 20. This clearly reflects the growth available for this sector in the future.
STOCKS TO WATCH
- Overseas Reality Ceylon
- Colombo Land & Development Company