Monday, October 25, 2010

Market ends on positive note

The week ended on a positive note as the ASPI gained 59.13 points to close at 6685.99 up by 0.9 percent. Milanka closed at 7270.80, rise by 1.7 percent with a gain of 121.54 points. Despite marginal addition to indices the market turnover was at peak midweek at Rs 5.2 billion.

The accumulated turnover at the end of the week was Rs 13.5 billion down by 28 percent wow. Market Capitalization gained by 0.90 percent to record at Rs 2211.46 billion as compared to Rs 2191.84 billion during the last week.

Among the sectors, diversified continued to lead the turnover tally at 36.21 percent with sector index at 2266.51 points.

This was down by 55.46 points over the previous week’s index at 2321.97.JKH and Aitken Spence were the main contributors to the sector turnover.

Banking and Finance followed diversified at 26.76 percent with the sector share up by 623.01 points to close at 16906.48. Commercial, HNB, Sampath and NDB were the major contributors to the sector.

The total market turnover was dominated by JKH this week with Rs 4.34 billion, accounting for over 32 percent of total market turnover. The share closed at Rs 302.3, with a decrease by 2.8 percent from last week.

Point of view
The bourse seems to have steadied its course with investor interest in blue chip stocks driving market activity.
The market correction has made valuations more attractive for strategic investments and bargain hunters to pick up stocks backed by sound fundamentals.

The upcoming IPOs should give impetus to investor sentiment, while corporate earnings for the quarter ended September 2010 have started flowing in and is expected to have a positive impact on the market, given the positive macro economic outlook.

Next top contributor to total turnover was Distilleries with 11 percent of the total turnover representing Rs 1.53 billion, while the share closed at Rs 180.9. Commercial Bank recorded Rs 839 mn turnover, trailing behind Distilleries.

The share traded at Rs 271 gaining 4.23 percent compared to last week.

The most traded stock during the week Asiri Surgical recording a volume of 53.48 million shares changing hands, with Asiri Hospital acquiring over 52 million shares of Asiri Surgical, strengthening its stockholdings on the latter. The stock closed at Rs 9.20. Vallibel followed behind trading 30 million shares closing at Rs 10.20, while Reefcomber traded 14 million shares. The stock appreciated by 18.33 percent to close at Rs 21.30 this week.

Net selling continued with the foreign investors with the aggregate outflow of Rs 3 billion, a rise by nearly 60 percent over the previous week.

Foreign buying strengthened by 165 percent at Rs 2.1 billion WoW and the foreign sales was recorded at Rs 5.3 billion up by 90 percent over the last week.

Top gainer for the week was Beruwela Walkinn up by 154.8 percent to close at Rs 191.1. Miramar at Rs 151 and Printcare Plc at Rs 132.3 were other gainers for the week at 68 percent and 44 percent respectively. Colombo Pharmacy, S M B Leasing and Blue Diamond were among top losers dropping value by 17.03 percent, 16.67 percent and 12.5 percent respectively.

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