Rumour mill working on PC Pharma
Brokers expect policy interest rates to be increased in order to contain credit growth as the capital continues to be inactive. PC Pharma PLC is also generating some interest on rumours of a speculative run.
"Treasury rates keep edging up higher and we are seeing the 3 month bill gain more than the 6 and 12 month. We believe that in April we could see the central bank increase rates slightly in order to continue easing credit growth. April’s monetary board announcement would indicate the direction of the interest rates and CBSL’s stance on credit growth," Bartleet Religare Securities Technical Analyst Stefan Juriansz said.
"Brokers made more revenue on Thursday betting on the cricket, as the market seems to be still. The concern is that if we are to experience more of such days we could expect the market activity to dry up which would reduce the market’s ability to reflect realistic prices of the counters traded," he said.
"PCP (PC Pharma) has been the focus over the last few days as it sold of heavily and there are rumors floating around trading floors discussing the possibility of speculative run. The huge crossing that took place is an indication that the rumor mill might be correct and we are evaluating the possibility of a trade.
KHL (John Keells Hotels) and JKH (John Keells Holdings) traded against the trend and have more room to move to the upside as we had suggested in previous Trade Daily’s and we are looking for target prices of 13.80 and 195 respectively.
"Another interesting low capitalized stock that could be in play within the next few months are CITW (Waskaduwa Beach Resort) and CITK (Kalpitiya Beach Resort) as they are being accumulated slowly. The stocks are also held by certain major players who have bullish interests," Juriansz said.
source - www.island.lk
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