Colombo Stock Exchange Re writes the History: Hotel stocks on Demand.

                        DAILY MARKET REVIEW

•  Net foreign buying for the day.

• Retail investors chased Hotel sector companies.

20/07/2010 (S.L.S.Picks) – Colombo Stock Market reported record gains for the second continuous day for the week today.

All share price index was up by 77.17 points to close at 4806.43 & more liquid Milanka price index was up by 81.17 points to close at 5461.23 points. This is the first time ever in the history of Colombo Stock Exchange that the All share price index has passed the all important 4800 barrier level.

The future potential of Colombo Stock Exchange was addressed by us under the special coverage “All Share Price Index - History performances & way forward “on 13th July 2010,  predicting the upward movement of the market. This has become a reality now & we expect market to reach 5000 barrier level well before end of the year 2010.

Renewed buying interest was witnessed in the Banking & Finance, Diversified Holdings, Hotels & Travels & Manufacturing sector Companies.

Turnover for the day was healthy Rs 2.6b.n

Foreign participation was at moderate levels. However foreigners were net buyers today by Rs 309m.n. Foreigners purchased Rs 576m.n. worth of shares & sold shares to the tune of Rs 267m.n.for the day.

Services sector rose by 11.25% due to the share price appreciation of John Keels Limited, followed by the Motors sector. Power & Energy sector was heading the negative performers list at the end of today’s trading session.

There were 131 positive contributors as against 39 negative contributors for the day.

ANNOUNCEMENTS

• JKL - Share split 01 for 01

 

CLOSER LOOK

• Ceylon & Foreign Trades share tops the top 10 gainers list today as well. It appreciated by Rs 15.25 or 29.47% to close the day at Rs 67.00.It has announced a share split of 10 shares for every 01 shares held.

• The quarterly results of the listed companies in the Colombo Stock Exchange for the MARCH – JUNE Quarter 2010 will be released to the market within couple of weeks time. The results released for JAN – MARCH 2010 quarter showed improved performances & earnings for this period has risen more than 150%. We expect better results from the listed companies for the JUNE 2010 quarter as well.

• Foreign participation was at a high level during the last two weeks.The Net foreign buying for the last two weeks tops Rs 2.1b.n. Foreigners were net buyers during today's trading session as well.This is a positive sign for the Colombo Market as investors are waiting to see continuous foreign buying in to the Colombo stocks.

• Active Institutional participation was encouraging & they were buying in to strong future growth counters that helped to boost the market activities during past couple of days.

• Buying for JKH  at improved price levels always gives the signal of an upward market potential. JKH was closed at Rs 223.50. The share was up by Rs 3.75 for the day. JKH share has continuous buying during the last two weeks onward at higher price levels.

• Demand continues for the low valued counters such as Blue ( Both N & X shares), Tess Agro Reef, Semb N

• Demand for hotel stocks were at high levels during today's trading sessions on back of improved Tourist arrivals to the country after the end of 30 year old civil war. Hotel stocks such as KHL, MARA,REEF,SIGV etc.. were chased by the investors during the final stage of the trading session.

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.

• National Development Bank

• Light House Hotel

• Overseas Reality

• Dunamis Capital

• Ceylon Grain Elevators

• Sierra Cables (Pending dividend of 0.20 cents.)

data - www.cse.lk