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.

Friday, July 16, 2010

Environmental Resources Investment Company shares / warrants spark the market activities

DAILY MARKET REVIEW

16/07/2010 (S.L.S.Picks) – Colombo Stock Market closed for the week today by registering record gains in both indices during the today's trading session.

All Share Price index was up by massive 38.18 points to close at 4676.89 & the more liquid Milanka Price Index was up by substantial 83.91 points to close at 5316.22

Turnover for the day was healthy Rs 2.6bn.

During the past week we have clearly predicted the possible upturn in the market during this week 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 & we expect market to reach 5000 barrier level well before end of the year 2010.

There were heavy retail buying as well as buying from the other categories such as High net worth individuals, Institutional investors, & foreign investors, for blue chip companies such as John Keels Holdings & Retail flavored Environmental Resources Investment (both shares & warrants) & Dankotuwa Porcelain Company.

Foreign participation was at low levels today. Foreigners were net sellers for the first time for this week & the net foreign out flow for the day was marginal Rs 52m.n. Foreigners purchased Rs 584m.n. Worth of shares & sold shares worth of Rs 636m.n.for the day.

Dankotuwa Porcelain continued to dominate the market today as well, together with Retail friendly Environmental Resources shares & warrants. There were 6.4m.n Dankotuwa shares changed hands today. The share closed at Rs 52.50 up by Rs 1.50 for the day. There were 5.3m.n, 3.9m.n, 3.4m.n, & 3.2m.n Greg “N” shares, & Greg .W0002, Greg.W0006, Greg. W0003 warrants respectively changed hands today.

Investment & trust sector recorded staggering 13.35 % growth & was the leading sector among all other sectors today due to the price appreciation of Greg shares & warrants, followed by services sector. Stores & Suppliers sector was leading in the negative performing sector’s list.

There were 69 positive contributors as against 71 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 ahead. The results released for JAN – MARCH 2010 quarter showed improved performances for the period. Earnings for this period has risen more than 150% & we expect better results from the listed companies for this quarter as well.

Foreign participation was at a high level than the previous week & they were net buyers for this week as well. The Net foreign buying for this week was Rs 1.2 b.n & net foreign inflow for the last week was Rs 900m.n. 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.

Dankotuwa Porcelain continued its upward journey in today's trading session as well. The company share has performed well during the past weeks after they received staggering Rs 433.5m.n fresh capital infusion from a consortium comprising Sri Lanka's premier investment holding company - Environmental Resources Investment PLC (ERI) and Ceylon Leather Products Ltd (CLP)

Buying for JKH at improved price levels always gives the signal of an upward market potential. JKH was closed at Rs 217.00. The share was up by Rs 7.00 for the day.

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.