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Wednesday, June 23, 2010

Kelani Tyres & Seylan Bank shares moved up: Colombo Stocks down

DAILY MARKET REVIEW

22/06/2010 (S.L.S.Picks) – Colombo Stock Market was down today due to profit taking by the retail investors. All share price index was down after recording history best index levels in yesterday’s trading session, due to the profit taking & month end debt clearing operations carried out by the brokering firms.

There were renewed buying interest on selected companies such as C.W.Mackie, Overseas Reality , Vallibel Power ,etc & the improved quarterly reports published by the many listed companies for the JAN – MARCH 2010 quarter (03 months) were reflect above average results. The earnings by the listed companies during the first quarter 2010 alone has risen 190% 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 in Colombo Stock Exchange Sri Lanka.

All share price index was down by 23.95 points to close at 4634.73 & the more liquid Millanka price index was down by 35.95 points to close at 5303.82 points.

Turnover for the day was healthy Rs 2.6 b.n

Foreign participation was at moderate levels. Foreigners remain as net sellers for the day by Rs 429m.n. Foreigners purchased Rs 357m.n. worth of shares & sold shares to the tune of Rs 786m.n.for the day.

Source & Supplies sector rose by 7.04% due to share price appreciation of Hunters Company was the leading sector, followed by Land & property sector rose by 2.29% due to share price increase in companies listed in Property sector such as York Arcade, Overseas Reality etc. Foot Ware & Textile sector was heading the negative performers list.

There were58 positive contributors as against 39 negative contributors for the day.

ANNOUNCEMENTS

Printcare PLC has announce a final dividend of Rs 2.00 /share

CLOSER LOOK

Brown & Company has potential to go up due to the exceptional profit figures publish by the company for the last financial year ended 31/03/2010. Net Assets Value / share up to Rs 135 from Rs 85.72 from year ago. Earnings per share were Rs 13.55 as at 31/03/2010. Up from Rs 6.36 reported for the same period last year. Reported profit was Rs 1.0b.n as at 31/03/2010 against Rs 438m.n.in 2009, up by 137%.

Seylan Bank Voting share appreciated by Rs 7.75 to close at Rs 86.25 & the Non voting counter appreciated by Rs 1.00 to close at Rs 45.00. Institutional Investors who like to have Voting rights in the bank sold their Non voting stakes & purchased Voting counter. However for retail Investors it is better to be with the Seylan X counter since it may offer a higher return % & a higher dividend yield over the Seylan N counter.

There was a sudden demand for the Kelani Tyres shares & large volumes changed hands at a price range between Rs 79.25 & 81.25 & closed at Rs 81.25 up by Rs 3.00. This share has a further upside potential on backed by the improved results published by the company.

STOCKS TO WATCH