Sri Lanka Stock Picks

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Tuesday, June 29, 2010

Colombo Stock Exchange recorded gains: Foreigners were Net buyers for the day

DAILY MARKET REVIEW

29/06/2010 (S.L.S.Picks) – Colombo Stock Market recorded gains in both indices today ending the profit taking period by the retail investors & the debt clearing operations carried out by the brokering firms during last couple of days.

There were renewed buying interest for the Land & Property sector companies & the improved quarterly reports published by many listed companies for the JAN – MARCH 2010 quarter (03 months) reflected above average results. The earnings by the listed companies during the first quarter 2010 alone has risen 170% so far, & will definitely help to bring down the market valuations to below 15 levels.

All share price index was up by 38.69 points to close at 4612.98 & the more liquid Milanka price index was up by substantial 42.55 points to close at 5300.08 points. The investor sentiment was boosted by the news of the approval of US$ 400m.n IMF loan facility for the Country.

Turnover for the day was healthy Rs 2.8 b.n

Foreign participation was at moderate levels. However foreigners were net buyers for the second consecutive day today by Rs 49m.n. Foreigners purchased Rs 481m.n. worth of shares & sold shares to the tune of Rs 432m.n.for the day.

Land & property sector rose by massive 12.70% due to the share price increase in companies listed in Property sector such as Equity One , Equity Two, York Arcade, Overseas Reality, Colombo Land & Building, East west Properties etc, followed by the IT sector. Hotels & Travels sector was heading the negative performers list.

There were 106 positive contributors as against 42 negative contributors for the day.

ANNOUNCEMENTS

CLOSER LOOK

Many low valued stocks recorded gains today & both top volumes counter & most active trades counters were filled with low valued shares.

Equity One a Carson group property company recorded massive price appreciation today to close at Rs 60.75 up by Rs 23.00 for the day.

Colombo Land & Development Company has further potential to go up in near future. There were "Rumors" in the market that their lands were revalued & Net Assets Value per share has improved above Rs 30.00 levels.

Share price of Cargills(ceylon ) came down to Rs 123.00 levels & recovered closed at Rs 128.00 today due to the selling pressure of few investors. However we believe that this share has a huge upside potential purely on the basis of its future growth prospects.