Tuesday, May 4, 2010

Vallibel finance Offered a minimum of 37.5% return for the Investors. Stocks down due to profit taking

                          DAILY MARKET REVIEW

04/05/2010 (S.L.S.Picks) – Sri Lanka stock Market was down today due to profit taking by the retail Investors.

All share price index down by 13.71 points to close at 4205.51 & more liquid Millanka index was down by marginal 3.63 points to close at 4748.60.

Turnover for the day was healthy Rs 1.4b.n backed by retail investors, High net worth individuals,& Institutional investors.

The most encouraging factor in today’s trading session was the net foreign buying for the second consecutive day.

Foreigners purchased shares to the tune of Rs 248m.n. & sold shares to the tune of Rs 137m.n. reflecting a net foreign in flow of Rs 111m.n. for the day.

Telecommunication sector rose by 2.36% & was the leading sector today, due to price appreciation of Dialog Telecom Company, followed by Motors sector. The leading negative performing sector was the Oil palm sector due to the share price decline of Bukit Darah Company.

Shares of Vallibel finance Company commenced trading today in Colombo Stock Exchange after its successful IPO. The company shares peaked Rs 34.25 & Closed at Rs 30.25 giving investors a return of 37.5% within a very short period.

There were 50 gainers as against 99 losers today.

ANNOUNCEMENTS
  • Royal Ceramics declared a second interim dividend of Rs 2.50 /share

































CLOSER LOOK
  • There were net Foreign buying in the Colombo Stock Market for the second consecutive day today.
  • Market came down due to profit taking by the investors.However better to have a very closer look for Fundamentally undervalued shares & Future growth stocks in order to get a better return in future.
  • Market correction always paved the way to grab discounted shares.
  • There were several crossings in selected Blue chip companies in today's trading session.
  • Buying for John Keels Holdings at improved price levels is a very positive signal to the market.

STOCKS TO WATCH
  • Dialog Telecom
  • Overseas Reality (Ceylon)
  • Colombo Land
  • Agalawatte Plantations

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