DAILY MARKET REVIEW29 /07/2010 (S.L.S.Picks) – Shares listed in Colombo Stock Exchange moved down during today’s trading session due to profit taking by the retail investors.
Environmental Resources Investment share together with warrants perform well in today's trading session. The share & the warrants representing today's top 10 gainers list,most active trades list & large volumes traded list.
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 271m.n & sold shares worth of Rs 245m.n reflecting a net foreign inflow of Rs 26m.n for the day. Net foreign buying was visible throughout the last three weeks. However foreigners were in the selling side so far for this week by Rs
278m.n.
All share price index down up by 19.83 points to close at 5119.10 & more liquid Milanka index down up by 23.33points to close at 5805.40
Turnover for the day was healthy Rs 3.2b.n which was supported by the Retail, High net worth individuals, Foreign & Institutional buying in to selected stocks.
Investment Trust sector index was up by massive 6.77% & was the leading sector among all other sectors due to share price appreciation of Environmental Resources Investment Company, followed by the Motors sector. The Health care sector was leading the negative performing sector list today.
There were 70 gainers as against 92 negative performing counters.
ANNOUNCEMENTS
- Alliance Finance Company - First & Final Dividend of Rs 3.50 /share
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 week’s 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 & the foreign buying tops Rs 3.0b.n during the last three weeks. This is a positive sign for the Colombo Market as local investors are waiting to see continuous foreign buying in CSE in future.
- 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 the companies like The Finance Company, Nation Lanka Finance (Formerly Ceylinco Securities & Financials) etc. Investors are expecting a reduction of Vat from Banks in future as well, & there for we expect Banks to perform well in the medium to long term.
- 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.
- 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
- Environmental Resources Investment
COMPARISON - GREG Warrants Vs GREG (N)
Our simple effort is to give an idea about the Greg warrants & its conversion prices to convert a warrant to a normal share.
Colombo Stock Market offers different types of legal investment instruments for the investors. These are as follows.
- Ordinary Shares (N)
- Non Voting Shares (X)
- Preference Shares (P)
- Debentures
- Warrants (W) - Certificate given by the company for the investors, the right of buying a company share at a stipulated price at a future date.
Trading Price As at 29/07/10 (Rs) | Warrants conversion year to a normal share | Exercise price to convert for a normal share (Rs) | The total cost of the conversion for a normal share (Rs) | |
GREG (W0001) | 112.25 | 2011 | 24.00 | 136.25 |
GREG (W0002) | 50.00 | 2012 | 33.00 | 83.00 |
GREG (W0003) | 46.25 | 2013 | 36.00 | 82.25 |
GREG (W0006) | 46.25 | 2015 | 39.00 | 85.25 |
GREG (N) | 126.25 | N/A | N/A | N/A |
- 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.
- Sierra Cables (pending dividend of 0.20 cents)
- Environmental Resources Investment
- Colombo Land & Development Company
- Ceylinco Securities & Financials
- Dialog Telecom
- National Development Bank
- Tangerine Hotel
Under valued hotels in the market
Market Trend
data - www.cse.lk
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