28/06/2010 (S.L.S.Picks) - Colombo Stock Exchange was down on a start of a fresh week today due to continuous profit taking by the retail investors & due to month end debt clearing operations by the most of brokering firms.
Colombo Stock Exchange is the best performing stock market in Asia so far for year 2010 with more than 35% return.Colombo Stocks are still attractive for long term investors where earnings by the listed companies during the first quarter 2010 alone has risen 170% so far, will definitely help to bring down the market valuations to below 15 levels. This is a clear indication of the future growth potential available to the investors who have faith in investing at Colombo Stock Exchange Sri Lanka.
Still you can find a lot of undervalued companies & sectors in the market. However we can expect a short term correction in the market where we can see that some of companies are trading at much higher prices. Just to mention, a market correction at different intervals is expected in every stock exchange.
All share price index was down by 27.26 points to close at 4574.29 & the Milanka index was down by 32.64 points to close at 5257.53
Foreign participation was at improved levels. Foreigners purchased shares worth of Rs 734m.n & sold shares worth of Rs 285m.n reflecting a net foreign in flow of Rs 449m.n.
Investor interest was focused towards the Dankotuwa Porcelain Company after its deal with Environmental Resources Company & Ceylon Leather Products Companies for a much needed cash infusion of Rs 433m.n This investment is by way of a private placement of 48,163,828 ordinary shares at Rs 9.00 /share. The consortium will hold 66.67% of the issued ordinary shares of the DPL Company after the share issue.
There were some interest to the Plantation sector companies as well & the main focused was towards the Rubber plantation companies. The rising oil prices in the world market will directly benefit the Rubber plantation companies.
Services sector was the highest gainer among all sectors today by registering a growth of 0.51% followed by the Plantation sector. Foot Ware & Textiles sector was down by 2.58% was the leading negative growth sector.
Turnover reported for the day was healthy Rs 2.5b.n
There were 46 gainers as against 97 losers for the day.
- Distilleries Company has announced Rs 2.50 final dividend
- Sampath Bank has announced a Scrip Dividend for its share holders as well as a sub division of it's shares on the basis of 02 shares for every single share.
- Shares of Dankotuwa Porcelain Company representing the top 10 gainers list, top trades list & top volumes list today after the company secured a deal for a cash infusion of Rs 433m.n for the future development of the company. We can expect a future price improvement in this share in medium to long run. DPL share was up by Rs20.75 to close at Rs 41.75
- There were some positive movements in the shares of Rubber Plantation companies today. Rubber Plantation Companies are expected to perform well in the medium to long run due to the ever increasing world oil prices.
- Foreigners were net buyers in today’s trading session by Rs 449m.n. This is a positive sign for the Colombo Market as investors are waiting to see foreign purchasing in the Colombo Stock Exchange in near future.
- Most of future growth stocks have come to attractive price levels. Further downward trend in prices of these companies will be good for bargain hunters.
- Dankotuwa Porcelain
- Colombo Land & Development
- Kotagala Plantation
- Agalawatte Plantation
- Dunamis Capital