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.

Saturday, July 10, 2010

Seylan Merchant Bank traded in large volumes: Colombo Stock Market reported losses

DAILY MARKET REVIEW

09/07/2010 (S.L.S.Picks) – Colombo Stock Market closed for the week today by registering losses in both indices for the day.

All Share Price index was down by 15.71 points to close at 4505.69 & the Milanka Price Index was down by 19.22 points to close at 5094.79 points.

Turnover for the day was Rs 933mn.

Retail investors continued to chase low valued stocks in the market today as well such as Seylan Merchant Bank both Voting & Non Voting shares, Sierra Cables, Blue Diamond Both Voting & Non Voting shares, Reef comber, Ceylon Glass, Amana takaful etc. Out of the low valued stocks which are trading below Rs 10.00 levels Sierra Cables still offers the best value for the investment in medium to long term.

Foreign participation was at low levels. Foreigners were net buyers for the day by marginal Rs 2.9m.n. Foreigners purchased Rs 152.9m.n. Worth of shares & sold shares worth of Rs 150m.n.for the day.

Stores & Suppliers sector recorded 2.00% was the leading sector today due to the share price appreciation of Hunters Company, followed by Oil Palm sector. Plantation sector was leading in the negative performing sector’s list.

There were 42 positive contributors as against 112 negative contributors for the day.

CLOSER LOOK

Foreign participation was at a low level & they were net buyers for the day. In most instances when the market reported losses we can witness a Net foreign buying for that particular day. This is an encouraging factor & it reflects the strong growth potential available in future for Colombo Stock Exchange.During the period 2001 - 2009 we witnessed an inflow of foreign funds to the Stock market. The war situation prevailed in the country during that period, gave a negative signal to the local investors & most of them were away from the market. However foreigners took the risk & invested in local Companies & ultimately they succeeded. Foreigners always look for the future & the long term prospects of the market.

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 market was down by more than 100 points & the local investor sentiment was at a negative territory.

Stock markets have ups & downs. If you are positive about the future of Sri Lanka, invest in Sri Lankan equities to get above average returns in the longer run.

Stock market is not a place to earn money overnight.It is a place for investments for future. A market correction at this point is really necessary for the strong future growth.Long term investors have no worries about the short term market corrections. They always welcome it & look for collecting good stocks at bargain prices.

Sampath Bank crossing of 174,200 shares took @ Rs 343.50 /share.

We can expect future growth stocks with high PE multiples & fundamentally sound stocks to dominate the market in next couple of months.

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. 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.