Commercial Bank 9.8% sold to a foreign fund. Colombo Stocks at record high levels.

                         DAILY MARKER REVIEW

02/06/2010 (S.L.S.Picks) – Sri Lanka stock Market was up for the second consecutive day today registering all time record levels in the following areas.

• All Share Price Index at its highest point level.

• Milanka Price Index at its highest point level.

• Highest ever market capitalization.

• 2nd highest daily turnover

Sri Lanka Stock Picks continuously reported in our Daily market review reports that the bargain hunters for growth stocks may arrive at any given time since the Colombo Stocks offered more than average returns for the investors who are willing to buy/ invest in stocks with a long term view. This has happened today & yesterday where investors rallied round to buy stocks after the Government announcement of the new duty structure for imports, especially for the Motor vehicles & Electronic goods &  after the sale of 9.8% Commercial Bank stake which was originally held with Dfcc bank to a foreign buyer. 

Today is a historical day for the Colombo Stock Exchange where we witnessed a massive foreign inflow of Rs 4.5b.n for the day. Foreigners purchased shares to the value of Rs 6.2b.n & sold shares worth of Rs 1.7b.n .This substantial inflow of foreign funds were visible first time after the end of 30 year old civil war in our country in may 2009.

Local investors were busy in collecting banking stocks expecting a reduction of effective tax applying for the banks at present.

All share price index was up by 41.59 points to close at 4300.39 & more liquid Millanka index was up by 71.56 points to close at 4849.94

Turnover for the day was healthy Rs 9.5b.n on back of foreign buying in to 9.8% stake of Commercial Bank of Ceylon.

Trading sector rose by 8.50% & was the leading sector among all sectors for the day due to price appreciation of Singer Sri Lanka Company, followed by Motors sector. The leading negative performing sector for the day was the Health care sector.

There were 86 gainers as against 55 negative performing counters.

CLOSER LOOK

• Stocks that are benefited directly from the re structuring of import taxes are as follows

                         * All the motor companies,Kelani tyres, Lanka Indian Oil Company, Chevron 
                         * Singer Sri Lanka , Brown & Company, Abans

• Purchase of 9.8% stake of Commercial Bank by a foreign buyer lifts the investor sentiment today,which already received a strong boost after the reduction of the import duty structure by the Government yesterday.

• Net inflow of foreign funds to the tune of Rs 4.5b.n for the day reflects the future growth prospects of the Colombo Stock Exchange.

• Crossings counter was filled with blue chip companies

STOCKS TO WATCH

• Pan Asia Bank

• Seylan Bank X

• Brown & Company

• Singer Sri Lanka

• Hemas Holdings

• Dfcc Bank

Data - www.cse.lk