Indices green after three days
While the parent company is primarily engaged in carrying out fashion retail activ ties, whileNB the subsidiaries are involved in activities related to or supporting the parent company's business.
Ms. Otara Gunewardene-holds a degree in Biology from the Bowling Green State University, Ohio. Starting out as the sole proprietor of one clothig store in 1990, she has been instrumental in engineering the growth and expansion of the company.
In FY10/11, its first full financial year, after being listed on the CSE, the company posted a net profit of Rs 32.6 Mn, up 29% YOY, supported by a 22% increase in revenue. The gross profit margins however, dropped to 34% from about 37% last year, due to a 14% YOY increase in cost of sales.
Government plans to double per capita GDP to US$ 4,000 by 2015 would bode well for the company. The addition to its network of stores would also enhance its future earnings. ODEL also has a land bank which allows for further expansion.
Both indices made gains to close higher, ending a 3-day streak of losses, while turnover too continued to remain high.
Despite some strategic crossings taking place, the market still seems to be largely dominated by speculative investors.
Power and Energy sector was the main contributor to the market turnover (due to Panasian Power), while the sector index increased by 0.45%. Panasian Power share price dropped by Rs 0.20 (2.59%) and closed at Rs 7.40.
Manufacturing sector also contributed significantly to the market turnover (due to Blue Diamonds Jewellery Worldwide) with the sector index decreasing 0.56%. Blue Diamonds made gains after E-Channeling purchased a 13.24% stake (13.7 Mn shares) in the company.
Blue Diamond closed at Rs 5.80, while E-Channeling gained Rs 0.80 (16.70%) to close at Rs 5.60.
Distilleries Company of Sri Lanka gained after posting an impressive growth in profits for FY10/11.
S o f t l o g i c Holdings announced that it had closed its IPO on its opening day today, as the issue was oversubscribed.