In­dices green af­ter three days

Daily Mirror (Sri Lanka) - - NEWS/CLASSIFIEDS -

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.

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