DAILY MARKET REVIEW
- Market is not overheated for foreigners - Net foreign buying for the third consecutive day for this week
- Total foreign buying for this week is Rs 1.0 b.n
All share price index was up by 44.39 points to close at 4600.22 & more liquid Milanka index was up by 43.17 points to close at 5181.20
Turnover for the day was a healthy Rs 1.7b.n
Foreigners were net buyers for the third consecutive day for the week. Net foreign buying for the three consecutive days & the last week, clearly reflects the future potential of the Colombo Stock Exchange. This is the first time we experienced a continues foreign buying in to the Colombo share market for more than 08 consecutive days after the civil war.
Net foreign inflow for the day was Rs 230m.n. foreign purchases were at Rs 322m.n. & foreign sales were at Rs 92m.n
Renewed buying interest was visible in Hotels sector shares due to the increased tourist arrivals to the country & the Banking sector companies as well. Banking sector, Hotels sector & Construction sector has been identified as leading growth sectors in post war Sri lanka.
Investments & Trust sector was heading the growth sector’s list due to share price appreciation of Environmental Resources Investment share, followed by Hotels & Travels sector. IT sector was heading the negative performers list for the day.
There were 111 gainers as against 45 negative performing counters.
CLOSER LOOK
- Foreigners were net buyers for the third consecutive day today. Net foreign buying for this week (Three days) so far is Rs 1.0 b.n. This is a positive sign for the Colombo Market as investors are waiting to see continuous foreign buying in to the Colombo stocks.
- 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.
- 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 still at attractive levels.
- Buying for JKH at improved price levels always gives the signal of an upward market potential. JKH was closed at Rs 206.00 /share up by Rs 1.00.
- The credit guarantee scheme approved by the Central Bank of Sri lanka to strengthen the liquidity position of the registered finance companies may give the confident to investors to invest in companies like The Finance Company, Nation Lanka Finance (Formerly Ceylinco Securities & Financials) etc.
- We expect market may heading for new high levels from tomorrow onwards as we witnessed there were fresh buying available for future growth stocks.
- The crossings counter was filled with blue chip shares listed in the CSE.
- Buying interest was visible in small valued shares as well. Shares such as Sierra Cables,Ceylon Glass,Seylan Merchant Bank, etc were in demand.
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.
- Colombo Land & Development Company
- Overseas Reality
- Dunamis Capital
- Ceylon Grain Elevators
- Sierra Cables
data - www.cse.lk
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