Colombo Stock Market was down by 1.68% : Foreigners were net buyers

                     DAILY MARKET REVIEW

07/07/2010 (S.L.S.Picks) – Colombo stocks were down substantially for the third consecutive day  due to continuous profit taking by the retail investors.

All share price index was down by 76.40 points to close at 4470.78 & more liquid Milanka index was down by massive 96.62 points to close at 5033.41

Turnover for the day was a healthy Rs 2.1b.n

“Every dark cloud has a silver lining” - Foreigners were net buyers for the last three days where market reported substantial losses due to much awaited market correction. Foreign buying for the last three consecutive days clearly reflects the future growth potential available in the Colombo Stock Exchange. We strongly feel that the foreigners are benefited  from the recent market correction & the local investors who over reacted to the much awaited market correction had to burn their fingers.

Net foreign inflow for the day was Rs 419m.n. foreign purchases were at Rs 853m.n. & foreign sales were at Rs 434m.n

Motors sector was the only sector that reported positive figures today. Motors index up by marginal 0.02%. The leading negative performing sector for the day was the Trading sector.

There were 12 gainers as against massive 161 negative performing counters.

 CLOSER LOOK

• We expect market to be in the negative territory for another couple of days purely due to the possible margin calls by the broker firms. However we strongly feel that the Colombo Stock Exchange will offer above average returns for the investors in the medium to longer run.

• Foreigners were net buyers for the last three days was a positive sign for the CSE.

• Most of Blue chip companies have come to attractive price levels. We strongly believe that this is a very good opportunity to the long term investors, new comers to the market & for the bargain hunters to enter the market.

• It is better to maintain a paid portfolio in the longer run to get the fullest benefits of the investing in shares.

• ASI was down by 141.68 points so far for the month of July 2010.

•  The Net foreign inflow for the last 03 days was Rs 987M.N.

• Better to have a closer look at the Blue Chip counters which were down to attractive levels.

data - www.cse.lk