The Colombo Bourse which performed outstandingly last year gaining approx. 40% seems to be continuing it’s upward momentum since the beginning of this year gaining nearly 142.90 points or 9.28% despite post Tsunami uncertainties, with the ASPI ending the week with a record breaking performance reaching it’s highest peak on each trading day, with Monday being, a Poya Holiday.

The strong investor sentiment which has remained since last week brought in fresh funds in to the market, which attributed to a staggering gain of 57.88 points in two consecutive weeks, marked the beginning of a bull run in the Colombo Bourse. The present positive signs from the political and economic front and the timely contribution made by donor communities in both aid and man power in rebuilding activities has indeed been encouraging, although a minor setback in growth is inevitable. However, with after effects proving minimal the individual and business community seem to be glowing with confidence with optimism on the economy to get back on track in the medium term.

The market also saw a dramatic change in focus with investor interest seemingly increasing on stocks that could benefit from the Tsunami reconstruction efforts. This has highlighted or given immense focus to the Manufacturing Sector with stocks viz ACL, KCAB, APLA, TKYO, COXY, LWL, TILE, LLUB, CERA, GLAS being the most sought after. These stocks also reflect fundamental value and are trading at attractive PIE levels backed by strong earnings potential.

Ever since the listing of LIOC shares the stock has been the number one in terms of daily turnover and has attracted many domestic ad foreign investors backed by it’s strong liquidity in the market. We reiterate our optimism on LIOC, which reached it’s highest price of Rs. 54.75/- since opening for trade in December albeit profit taking by investors saw the stock settling at Rs. 53.50/- at the end of the week. Stocks in the Diversified Sector followed suit with blue chips in the likes of JKH, SPEN, HAYL & HHL reaching new high’s WoW. The week also saw significant interest building on RICH, which appreciated by Rs. 30/- WoW before closing at Rs. 1621-.

Interest also developed around the wounded tourism sector with, tourist arrivals in December reaching a staggering 66,160 the highest ever on any given month in the Sri Lankan history. However, as. this is a sensitive industry prone to injury the Tourism Board does expect a dip of 20% in tourist arrivals in the short term but is optimistic of a speedy recovery on the back of intense promotional activity.