SRI LANKA - COLOMBO STOCK MARKET CONTINUES IT'S UPWARD MOMENTUM TODAY UP BY 0.97%

19/02/2010 - Colombo Stock Market continues it's upward trend today as well & Was up by 0.97% . ASI was up by 36.04 to close at 3768.81 & Milanka index was up by 83.80 points to close at 4343.04.

Turnover for the day was Rs 1.6 b.n..

Foreigners were net sellers today.Foreign purchases were at Rs 55 m.n. & foreign sales were at massive Rs 590 m.n. resulting a net outflow of Rs 535 m.n.

A large block of C.W.Mackie [29% stake] was purchased by a high net worth individual Dr.T. Senthilverl @ Rs 35/share. As a result of this trade share price of C.W.Mackie advanced by 20.90% to close at Rs 40.50.

There were 94 gainers as against 54 losers as at end of trading today.

    TOP FIVE GAINERS FOR THE DAY                              TOP FIVE LOSERS FOR THE DAY


      LARGE TRADES FOR TODAY

    CROSSINGS FOR THE DAY

Today's top gainers list were represented by two stocks previously mentioned by SRI LANKA STOCK PICKS through our Exclusive "CSE RUMOR" report.

• MASKELIYA PLANTATIONS
• KAPILA HEAVY

NOTE

• We expect the market to continue like this in coming weeks as well on back of beyond expected company results release by the listed companies.
• Further during February to June most of companies are declaring dividends for it's share holders.
• Today we saw over 2.0 m.n. shares of LITE changing hands. This is a positive signal for this share due to following reasons. [ * A capital reduction to be effected during the month of March 2010 in order to wipe off carry forward losses. * Share price has not moved up for the past 8 months. * New product range. * Opportunities available for company products from North & East areas. * NAV is around Rs 6.00 per share. * Present holding of shares will not get reduce due to capital reduction. * More clean balance sheet after  capital reduction. * Closing price today Rs 5.50.]                                               

SRI LANKA - ANOTHER FOUR PLANTATION COMPANIES REPORTS RECORD GROWTH FOR DEC QUARTER 2009

11/02/2010 - Several plantation companies listed in Colombo Stock Exchange reported improved profits for the Dec 2009 quarter. By now all the plantation companies which released results for the same period had recorded significant profit improvements. [Reasons - see our Plantation report]


Hence we advice investors to collect shares of theses companies in the event of any price decline in future.

 
    KEGALLE PLANTATIONS


     Net assets per share was Rs 58.89 as at 31/12/2009

     BOGAWANTALAWA PLANTATIONS





     Net assets value of BOGA as at 31/12/2009 was Rs16.71


     MASKELIYA & NAMUNUKULA PLANTATIONS




Net assets value of MASK was Rs 33.28 & Net assets value of NAMU as at 31/12/2009 was Rs 35.09

SRI LANKA - IT'S PLANTATION TIME NOW AT COLOMBO STOCK EXCHANGE

SECTOR           -     PLANTATIONS

SECTOR P.E.    -    12.50

MARKET P.E.   -    17.75

Plantation companies in the Colombo Stock Exchange are mostly undervalued at present. Specially if you take past couple of months, Plantation companies as a Sector substantially  under performed to the Overall market.

WHY PLANTATION SECTOR IS NOT ATTRACTIVE ?

• High Cost of Sales [ Labour cost,Fertilizer cost. etc]
• Volatility in Commodity prices in the market.
• Unpredictable weather conditions.

WHY PLANTATIONS ARE ATTRACTIVE NOW?

• Increasing Oil prices in the world market paved the way to increase the demand for Natural Rubber Products & Palm Oil products.
• Commodity prices are on the rebound presently.
• Most of Plantation companies are diversified.
• Sector which is substantially under performed to the market.
• Most of other sectors in the Colombo Stock Market are over heated now.
• Best strategy is to move away from heated speculative counters & to invest in plantations.
• Most of the share prices of other companies in the Colombo Stock Market are @ their highest levels reported for the past 5 to 7 years. But not the Plantations.

There are 18 plantation companies listed in Colombo Stock Market up to now.

Main income generating crops are

• Tea
• Rubber
• 0il palm

Apart from these core income generating sectors, many of listed plantation companies have diversified their business interest to the following areas as well.

 * Hydro power   * Tourism   * Forestry   *Investments   *Other cultivations  [Coconut, Perennial crops etc.]



 Note - * December Companies +

            * Profits including all other details of  HORANA & WATAWALA  Plantations were as at  31/12/09


BEST BETS IN THE MARKET

• Balangoda Plantation                                                                             
• Malwatte Plantation 
• Watawala Plantation
• Kotagala Plantation
• Namunukula
• Kegalle
• Kelani Valley
• Agalawatte
• Hapugastanne
• Maskeliya