Sri Lanka Stock Picks

Sri Lanka stock picks site has been developed to give first hand information with regard to share trading opportunities available for investors who do not like go through lengthy research reports, calculations,etc but to have a clear idea about stocks that have future up side potential.Our service is just not for day traders but for the investors who wish to see their money growing in the long run.Our main objective is to provide information relating to trading under one roof.

Tuesday, July 27, 2010

Colombo Stocks @ History best levels. Index hit 5000 barrier & JKH on continues demand

DAILY MARKET REVIEW

Market hit 5000 index level during mid trading session.

Foreigners continue were Net buyers to day. Net foreign inflow tops Rs 3.0b.n mark for the past 03 weeks.

Dialog Telecom - Good candidate for foreigners.

John Keels Holdings continue to perform well.

27/07/2010 (S.L.S.Picks) – Colombo Stock Market reported record gains for the second consecutive day for the week today.

All share price index was up by 55.52 points to close at 4999.05 & more liquid Milanka price index was up by massive 73.29 points to close at 5669.19 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 5000 barrier level. The All share price index crossed the 5000 mark during the mid day trading session today & ended just below the 5000 mark.

We have clearly predicted the possible upturn in the market purely on the grounds of future growth potential of the shares listed in the Colombo Stock Exchange. We have published a special article “All Share Price Index - History performances & way forward “on 13th July, predicting the upward movement of the market. This has become a reality now & our expectation was market to reach 5000 barrier level well before end of the year 2010 at that time & the ASI has met its target well before the stipulated time frame.

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

Turnover for the day was healthy Rs 2.3b.n

Foreign participation was at moderate levels. However foreigners were net buyers today by Rs 56m.n. Foreigners purchased Rs 335m.n. worth of shares & sold shares to the tune of Rs 279m.n.for the day.

IT sector was up by 2.47%, followed by the Plantations sector. Footwear & Textiles sector was heading the negative performers list at the end of today’s trading session.

There were 106 positive contributors as against 48 negative contributors for the day.

CLOSER LOOK

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 three weeks.The Net foreign buying for the last three weeks tops Rs 3.0b.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 240.00. The share was up by Rs 5.50 for the day. JKH share has continuous buying during the last two weeks onward at higher price levels.

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,HSIG, HUNA SIGV etc... were collected by the investors expecting further upward movement of these companies.

Investor interest was focused towards the country’s premier telecommunication operator Dialog Telecom PLC where 15.4m.n shares of DIAL traded hands. They have reported exceptional profits for the last six months ended 30/06/2010 from a loss position of Rs 9.5b.n reported in year 2009. The reported profit for the period was Rs 2.0b.n The share closed at Rs 10.50 up by 0.25 cents.

Today;s crossings counter was full of Blue chip companies listed in CSE. A parcel of 1.0m.n shares of Dialog traded as a crossing today @ Rs 10.75

We can expect DIALOG Telecom to perform well during medium to long term future on back of exceptional performance reported by the company. This is one of few companies in the market where foreigners can purchase in large quantities due to the high liquidity of its shares.

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.

Hotel Marawila

The comparison of Hotel Marawila together with Hotel index,ASI, & MPI of the Colombo Stock Exchange clearly reflects the performance of the MARA for the past 18 months period. The graph shows us that the MARA has clearly under perform to the all three indexes for the last couple of months & crosses the ASI & MPI very recently.

MARA is the only hotel listed in the Colombo Stock Exchange that trades below Rs 20 levels as at end of today's trading session.( A 10 Rupee company) The REEF is originally reported as a One rupee company.

MARA has reported improved profits as at 31/03/2010 & the reported profit was Rs 22.0m.n, against Rs 13m.n reported for the same period in year 2009. NAV per share stands at Rs 3.98 as at 31/03/2010.

MARA is a Lankem Ceylon PLC owned company.

We expect MARA to deliver over 80% return for the investors who invest in the company shares at current price level ( Rs 12.75) over medium to long term period purely on back of increased tourist arrivals to the country.