Return From the Shares Listed in Colombo Stock Exchange Sri Lanka

(S.L.S.Picks) -We have selected following companies listed in the Colombo stock exchange which were represented top price gainers list for the past week (16/08/2010 to 20/08/2010) to give you a basic idea of the value of investing in shares at Colombo Stock Exchange, which was rated as Asia's best performing stock market & World's second best performing stock market in year 2009. Colombo Stock Exchange is the best performing stock exchange in Asia so far for year 2010.

SEE THE RETURN FROM BELOW MENTIONED SHARES. THIS IS WITHING A PERIOD OF ONE WEEK.

THINK & INVEST NOW IN COLOMBO STOCK EXCHANGE-SRI LANKA STILL YOU ARE NOT LATE.

Stock	Opening Price   (Rs)	Closing Price (Rs)	Week On Week Change                    %
MORI (X)	775.00	1241.60	60.21
LOLC	405.10	648.60	60.11
TAFL	15.80	25.10	58.86
MORI (N)	1000.00	1585.00	58.50
SPEN	1850.00	2701.60	46.30
SELI	430.00	615.00	43.02
BUKI	5587.80	7908.00	41.52
NEH	659.50	909.10	37.85
CARS	588.50	794.00	34.92
ABAN	132.90	177.70	33.71

 Comments - 

It is very clear that the all most all the stocks that were representing last week's top 10 gainers list have reported improved profits for the period ended 30/06/2010 & this was similar to the previous week's top gainers list as well.This is a very god trend to continue for the future development of the Colombo Stock Market. We expect that the future growth stocks & fundamentally sound stocks listed in the CSE will out perform the market in coming months

POSITIVE ECONOMIC FACTORS

• Central Bank of Sri Lanka has forecast a 6.5 % economic growth for the country in year 2010.

• Stable government to adopt consistent economic policies in the country.

• The Economic growth in future is expected to be well supported by the development activities in the Construction & the Agricultural sectors as well.

• Sri Lanka Share Market (Colombo Stock Exchange)was ranked No 01 in Asia & second best in the world in 2009 in terms of growth. We are the best performing stock exchange in Asia so far for the year 2010. Bloomberg news wires has reported that Colombo Stock Exchange was in the 02 position in terms of growth so far for this year.

• Holding the International Indian film festival in Sri Lanka gave a much needed boost for the country's tourism sector.

• Expected improved earnings  by the listed companies in future.

• Approval of the  IMF third tranche loan facility.

• Sri Lanka heads powerful G15 summit,consists of 18 developing countries,which includes India, Brazil, Malaysia,Iran, Mexico,Argentina, Chile etc.

• Sri Lanka will host the next G15 summit t in year 2012.

• Increased demand for Government Treasury Bonds by the foreign funds.

•  Colombo has been selected to host several international business forums during this year. (Eg- Hotel show 2010, Asia Micro Finance forum 2010,Colombo Stock Exchange (CSE) is to hold a high-profile Investor Forum in Sri Lanka early 2011)

•  U.S. State Dept lifts travel warning on Sri Lanka, will be a great boost for the Country as a whole & for the tourism industry.

• Expected boom in Tourism Industry - Tourist arrivals to the country have increased by 42.3%. Arrivals has risen for the 12th consecutive month since the end of the war as per the Reuters reports.Earnings from the tourism industry has also up by 68.8% to $ 174.9 for the first four months as per the central bank data.

•  Low interest rates, Low inflation & Expected high consumer spending in future are the key factors to be considered when investing in the Colombo Stock Market.Recent reduction of policy rates will boost the capital market activities further.

• Removal of the war risk insurance for Sri Lanka by the London Underwriters as a result of the end of 30 year old civil war in the Country.

• Price-to-earnings ratio to be around 15 times by end of year 2010 as a result of the reported high earnings and growth by the listed companies. The 1st quarter corporate results reflects an improvement of over 175% over the same period in year 2009.

• Sri Lanka expects 600,000 tourists arrivals in year 2010.

• Granting of tax concessions for imports such as Electrical items, Motor vehicles etc.

• Budget targeted the long term economic growth of the country.

• Sri Lanka has a strong backing from the future power house of the world. The BRIC countries.(Brazil,Russia,India,China)

• Sri Lanka to host 20 - 20 world cup in year 2012.

• Expected credit growth due to reduction in lending rates.

• The contribution of the northern province to the GDP improved slightly to 3.3 percent in 2009 compared to 3.2 percent in 2008.The eastern province's contribution to total GDP edged up to 5.8 percent in 2009 compared to 5.6 percent in 2008."This was a positive development that may be observed since the ending of the 30-year old conflict.

• International insurers have removed Sri Lanka from their cargo war insurance list paving the way for reduced import costs, removal of surcharges and increasing business confidence.

• The Central Bank has design a credit guarantee scheme to strengthen liquidity positions of registered finance companies and specialized leasing companies will boost the cash flows of the sick finance companies.

• Tourist arrivals to Sri Lanka increased by 48.4% during the first half of 2010 (January-June), with a total of 278,652 arrivals to the country in comparison to 187,729 arrivals during the same period last year (2009).

• Total arrivals increased to 341,991 for the period Jan to July 2010, as against 229,952 during the corresponding period of 2009.July also recorded the highest number of arrivals, at 63,339, since January 2009, which was a 50 percent growth compared to July 2009.

• The government is planning to reduce taxes imposed on banks, financial institution and companies in a bid to generate investments required to push Sri Lanka’s growth rate to 8 percent in the short term and to double digits in the medium term.

• Operations of Hambantota Harbor to be commenced withing couple of months & the anticipated revenue generation  through this project will be at high end.

• Several new broker firms have planned to commence business at the Colombo Stock Exchange withing a very short time. Approval has been granted to one Indian company (Infoline) to start a brokering house in Colombo Stock Exchange. 

• The British government has removed the restriction on travel imposed to its citizens touring Sri Lanka's Northern Province.

• A New York based asset management company set up a frontier office in Colombo with a commitment of US$ 20 million to be invested in a strategic investment unit which would be set up in the near future with the ability to bring in more foreign investments and encourage investments from the Diaspora, local institutional and retail investors.

• A research report by a group of strategists and economists at global banking giant HSBC is encouraging the buying of Sri Lankan government bonds and treasury bills.

•  Foreigners already got the taste of Colombo Stock Market. Net foreign buying for the first couple of weeks of the month of July tops Rs 3.0b.n mark & net foreign buying for the period 26/07/2010 to 30/07/2010 was Rs 359m.n. This is the first occasion that we witnessed a continuous inflow of foreign funds to the Colombo Stock Market after eradication of the 30 year old civil war from our country in late May 2009.

 data - www.cse.lk