Apollo Hospitals & Hemas Power on Demand : Colombo Stocks Recovered.

                   DAILY MARKET REVIEW

12/07/2010 (S.L.S.Picks) - Colombo Stock Exchange reported gains on a start of a fresh week today on back of fresh retail buying & High net worth individuals buying  in to selected stocks.

Colombo Stock Exchange is the best performing stock market in Asia so far for year 2010 with more than 35% return & is still attractive for medium to long term investors. Investors still can find a lot of undervalued companies & sectors in the Stock Market. There are companies trading with PE multiples well below 14- 12 levels.

All share price index was up by 28.26 points to close at 4533.95 & the Milanka index was up by 11.06 points to close at 5105.85.

Foreign participation was at moderate levels. Foreigners purchased shares worth of Rs 429m.n & sold shares worth of Rs 198m.n reflecting a net foreign in flow of Rs 231m.n.

Investor interest was focused towards the Lanka Hospitals Corporation (Apollo) & Hemas Power PLC. Shares of Both these companies’ traded heavily today. There were 5.3m.n shares changed hands in LHCL & 1.9m.n shares changed hands in HPWR. Both these Companies represent Top 10 gainers list, Top volumes traded list & the Top trades list for the day.
LHCL (Apollo) closed at Rs 39.00 up by Rs 13.50 & Hemas Power was up by Rs 2.50 to closed at Rs 23.25.

Health Care sector was the highest gainer among all sectors today by registering a growth of 9.84% due to share price appreciation of Apollo Hospitals Company, followed by the Footwear & Textiles sector. IT sector was down by 2.50% was the leading negative growth sector.

Turnover reported for the day was healthy Rs 1.1b.n

There were 75 gainers as against 67 losers for the day.

 
CLOSER LOOK

• Foreigners were net buyers during today’s trading session by Rs 231m.n. This is a positive sign for the Colombo Market as investors are waiting to see continuous foreign buying in CSE.

• 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. We can expect the arrival of bargain hunters for some of Blue chip companies, as the trading prices of these stocks were at attractive levels.

• Net Foreign buying for the past week was Rs 900m.n. Foreign Purchases were at Rs 1.9b.n & Sales were Rs 1.0b.n During this period the market was down by more than 100 points & the local investor sentiment was at a negative territory.

• Buying for JKH the at improved price levels always gives the signal of an upward market potential.There were  two crossings at Rs 205.00 /share. The stock is up by Rs 2.00 to closed at Rs 204.75.

STOCKS TO WATCH

• Sampath Bank -

Has reported exceptional performance for the 1Q 2010 ended 31/03/2010 by registering a profit of Rs 598m.n as against 397m.n reported for the same period in year 2009.This reflects a profit growth of 50.6% YOY. Earnings per share (EPS) for the period was Rs 7.09 as at 311/03/2010 & it was Rs 5.24 for the same period in year 2009.

NAV of Sampath share as at 31/03/2010 was Rs 174.33. Sampath trailing PE ratio is below 12 & is one of lowest among listed banks.

Sampath Bank has a pending subdivision of 2 shares for every single shares held.

• Hemas Power -   

The Company is involved in generating electricity both with Thermal Power & Hydro  Power.

It has reported improved profits for the last financial year ended 31/03/2010. Reported profit was Rs 243m.n as against Rs 230m.n in 2009. EPS as at 31/03/2010 was Rs 2.12. Net Assets Value / share is Rs 20.70.

Hemas Holdings with a 75% stake in  HPWR Company has the controlling stake.

• Overseas Reality 

• Dunamis Capital

• Ceylon Grain Elevators

• Sierra Cables

data - www.cse.lk