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Thursday, May 20, 2010

Ceylon Leather Products continuous its upward trend: Foriegners were net buyers in Colombo Stock Exchange

DAILY MARKET REVIEW

20/05/2010 (S.L.S.Picks) – The Indices of the Sri Lanka stock Market were moved opposite directions due to continuous selling pressure by the retail investors & High net worth individuals & Foreigners buying in to selected valued stocks.

All share price index was up by 4.83 points to close at 4248.37 & more liquid Millanka index was down by 4.13 points to close at 4788.58

Turnover for the day was healthy Rs 1.3b.n backed by the selective buying by the bargain hunters.

Foreigners were net buyers for the second consecutive day today where they purchased shares to the tune of Rs 403m.n. & sold shares to the tune of Rs 312m.n. reflecting a net foreign in flow of Rs 91m.n.

Footwear & Textile sector rose by 3.07% & was the leading sector among all sectors for the second consecutive day today, due to the share price appreciation of Ceylon Leather Products s, followed by Beverage food & Tobacco sector. The leading negative performing sector was the IT sector.

There were 51 gainers as against 90 negative performing counters.

ANNOUNCEMENTS

John Keells Holdings PLC declared Final dividend of Rs 1.00 /share

Ceylon Cold Stores PLC declared First & Final dividend of Rs 4.00 /share

Kegalle Plantations PLC declared First & Final dividend of Rs 4.00 /share

CLOSER LOOK

Large quantities of Hatton National Bank & Commercial Bank changed hands during today’s trading session as crossings.

Shares of Ceylon Leather Products which 71.29% owned by Environmental Resources Investment Company after the recent purchase of its shares @ Rs 120.75 have appreciated continuously during the recent past & closed at Rs 180.25 up by Rs 12.00 for the day. The first stake of Ceylon Leather Products was purchased @ Rs 55.00 /share by the Environmental Resource Investment Company. This gives a substantial book profit for the ERI Company.

* 3,625,000 CLPL shares purchased @ Rs 55.00/share 0n 27th June 2009 by ERI.
* 2,684,500 CLPL shares purchased @ Rs 120.75/share on 6th May 2010 by ERI.

Now the value of all these shares have appreciated & the present market value of CLPL share is Rs 180.25. ERI has already booked a substantial profit on this investment.