Sri Lanka Stocks at History best levels: Demand for " GREG " share continues

                    DAILY MARKET REVIEW

19/07/2010 (S.L.S.Picks) - Colombo Stock Exchange reported gains on a start of a fresh week today on back of retail buying in to selected stocks. Colombo Stock Exchange is now at record high levels & both indices are now at its history best levels.

Colombo Stock Exchange is the best performing stock market in Asia so far for year 2010 with more than 35% return & is still attractive for medium to long term investors. Investors still can find a lot of undervalued fundamentally sound companies & sectors in the Stock Market. There are companies trading with low PE multiples.

All share price index was up by 52.37 points to close at record 4729.26 & the Milanka index was up by massive 63.84 points to close at 5380.06

Foreign participation was at moderate levels. Foreigners purchased shares worth of Rs 76m.n & sold shares worth of Rs 141m.n reflecting a net foreign out flow of Rs 65m.n.

Investor interest was focused towards the Environmental Resources Investment shares & warrants, Dankotuwa Porcelain, Blue Diamond both Voting & Non voting shares, Nation Lanka formerly Ceylinco Securities& Financials, Touchwood Company shares etc. Blue X was the highest volumes traded share today.There were 22m.n shares changed hands today.  

Investment Trust sector was the highest gainer among all sectors today by registering a growth of massive 11.53% due to share price appreciation of Environmental Resources Investment company shares & warrants, followed by the Oil Palm sector. Banking & Finance sector was the only sector that showed negative results today & is down by marginal 0.03%.

Turnover reported for the day was healthy Rs 2.3b.n

There were 88 gainers as against 59 losers for the day.

ANNOUNCEMENTS

•  CFT has announced a subdivision of its existing ordinary shares in to 10

•  BOPL has announced a dividend of 0.50 cents /share

 CLOSER LOOK

• Ceylon & Foreign Trades share tops the top 10 gainers list today. It appreciated by Rs 18.25 or 54.48% to close the day at Rs 51.75.It has announced a share split of 10 shares for every 01 shares held.

• Environmental Resources Investment shares & warrants continue to attract investor interest during today's trading session as well. The share has offered a substantial return for the investors who invested in the company shares during the past one & half years. The company which is classified under the Investment Trust sector has substantial interest in several quoted & unquoted companies in Sri lanka & Overseas. 

• 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 & earnings for this period has risen more than 150%. We expect better results from the listed companies for the JUNE quarter as well.

• Foreign participation was at a high level during the last two weeks.The Net foreign buying for the last two weeks tops Rs 2.1b.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.

• Buying for JKH  at improved price levels always gives the signal of an upward market potential. JKH was closed at Rs 221.00. The share was up by Rs 5.75 for the day. This share has continuous buying during the last week onwards at higher price levels.

• The only crossing for the day was a block of NDB shares changed hands @ Rs 240.00/ 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.

• National Development Bank
  

• Dunamis Capital

• Overseas Reality

• Sierra Cables (Pending dividend of 0.20 cents.)

• Ceylinco Securities & Financials.

• Colombo Land & Development Company

• Environmental Resources Investment ( Shares & warrants) 

data - www.cse.lk