The Finance headed the top gainers list : Colombo Stocks up for the second day

• Market is not overheated for foreigners - Net foreign buying for the second consecutive day for this week

• Total foreign buying  for this week Rs 782m.n

• Several large crossings John Keels Holdings @ Rs 205.00  boosted the Turnover.

13/07/2010 (S.L.S.Picks) – Colombo Stock Market recorded gains for the second continuous day today.
All share price index was up by 21.88 points to close at 4555.83 & more liquid Milanka price index was up by 32.18 points to close at 5138.03 points

Renewed buying interest was witnessed in the Banking & Finance sector Companies today as result of the news that the Central Bank has approved a credit guarantee scheme to strengthen the liquidity positions of registered finance companies and specialized leasing companies which would be finalized and operational by next Thursday (15).

Turnover for the day was healthy Rs 1.8b.n

Foreign participation was at moderate levels. However foreigners were net buyers for the second consecutive day today by Rs 551m.n. Foreigners purchased Rs 609m.n. worth of shares & sold shares to the tune of Rs 58m.n.for the day.

Land & Property sector rose by 4.15% due to the share price increase in several property sector Companies, followed by the IT sector. Health Care sector was heading the negative performers list.

There were 118 positive contributors as against 35 negative contributors for the day.

ANNOUNCEMENTS

• ACL Plastics PLC 2.50 Interim

• Kelani Cables PLC 0.75 Second Interim

• Colonial Motors PLC 1.00 First & Final

• Harischandra Mills PLC 28.00 Final

 

CLOSER LOOK

• Foreigners were net buyers for the second consecutive day today. Net foreign buying for this week (Two days) so far is Rs 782m.n. This is a positive sign for the Colombo Market as investors are waiting to see continuous foreign buying in CSE.

• 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 at attractive levels.

• Buying for JKH the at improved price levels always gives the signal of an upward market potential. There were seven crossings of JKH (3.0m.n shares) at Rs 205.00 /share. The stock is closed flat at Rs 205.00.

• 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.

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.

• Hemas Power -   

The Company is involved in generating electricity both with Thermal Power & Hydro  Power.

It has reported improved profits for the last financial year ended 31/03/2010. Reported profit was Rs 243m.n as against Rs 230m.n in 2009. EPS as at 31/03/2010 was Rs 2.12. Net Assets Value / share is Rs 20.70.

Hemas Holdings with a 75% stake in  HPWR Company has the controlling stake.

• Overseas Reality 

• Dunamis Capital

• Ceylon Grain Elevators

• Sierra Cables

data - www.cse.lk