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 23, 2010

Foreign buying continues in the market: Colombo Stocks down marginally

DAILY MARKET REVIEW

22 /07/2010 (S.L.S.Picks) – Colombo Stock Exchange reported losses from its record high levels reported yesterday (21/07/2010) due to profit taking by the retail investors.

Foreigners continue to buy Sri Lankan equities, since Colombo Stocks still have the capacity to offer attractive returns in medium to long run. Foreigners purchased shares worth of Rs 493m.n & sold shares worth of Rs 266m.n reflecting a net foreign inflow of Rs 227m.n for the day. Net foreign buying was visible throughout the last two weeks & the trend continues to this week as well. Foreigners were net buyers for the last three days of this week so far, which results Net foreign inflow of funds totaling to Rs 799m.n to the market. This was on top of Rs 2.1b.n net foreign inflow of funds received to the market over the last two weeks period.

All share price index was down by 8.40 points to close at 4849.17 & more liquid Milanka index was down by marginal 3.01points to close at 5500.27

As we predicted through our daily market review reports, there were continuous buying interests for Blue chip counters such as John Keels Holdings, which we believe is a positive sign of the overall market activities.

Turnover for the day was healthy Rs 2.3b.n which was supported by several large parcels of Hatton National Bank traded @ Rs 300 & Rs 295/share.

Investment Trust sector index up by 3.13% & was the leading sector among all sectors due to share price appreciation of Environmental Resources Investment Company, followed by Construction & Engineering sector. The IT sector was leading the negative performing sector list today.

There were 64 gainers as against 96 negative performing counters.

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.

Foreigners were net buyers during today's trading session & this is for the third consecutive day for this week. .This is a positive sign for the Colombo Market as local investors are waiting to see continuous foreign buying in CSE.

Buying for JKH the at improved price levels always gives the signal of an upward market potential. JKH was closed at Rs 228.00 today & was up by Rs 1.00 for the day. JKH share has continuous buying interest during the last two weeks onward at higher price levels.

Amaya leisure has sold off its controlling stake in Amaya Reef at the price range of between Rs 5.00 - Rs 4.20/ share

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.