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Monday, January 3, 2011

Bourse ends benchmark year

It was an encouraging year end week with positive indices all through the week.

ASPI gained 78 points to end at 6635.87 up by 1.18 percent. Milanka added 76 points to rise by 1.09 percent and closed at 7061.46.

Nearly all sector indices recorded an increase week on week.

Aggregate value of turnover was Rs 6.5 billion down by 8 percent of earlier week’s value of Rs 7.1 billion. The average daily turnover for the week was Rs 1.30 billion vis a vis Rs 1.77 billion last week while the share volumes escalated by 59 percent. Market Capitalization improved to Rs 2210 billion as against Rs 2184 billion in the previous week while the market P/E Ratio and PBV remained at 25.2 and three respectively.

Banking, Finance and Insurance dominated the turnover statistics with 26.96 percent share followed by Beverage, Food and Tobacco at 17.54 percent and Manufacturing at 16.48 percent.

Total Banking turnover for the week was at Rs 1.76 billion with major contribution from Commercial and HNB (Non Voting). Distilleries, Bairaha Farms and Three Acres Farms added to the Beverage, Food and Tobacco while Manufacturing sector was supported by Grain Elevators.

Banking, Finance and Insurance at 54.54 percent was also the foremost contributor to the market volumes with SMB Leasing both voting and non voting and Amana Takaful Insurance being the major contributing counters. Total volumes marked in the sector were at 208 million shares.

Dialog sustained the Telecom sector with 14.67 percent share in volumes with nearly 56 million shares. Several crossings in Dialog placed the scrip at the top turnover chart for the week with 10.14 percent of the total turnover at Rs 664 million.

Commercial Bank was second in place with 7.27 percent share adding Rs 475.83 million to weekly turnover with the share closing at Rs 260.9. Distilleries added 5.31 percent to the total turnover with Rs 347.8 million and nearly 2 million shares.

Dialog remained the most traded stock with volumes of 55.4 million. SMB Leasing both voting and non voting traded 42.6 million and 38.85 million shares respectively.

The selling pressure of foreigners continued in this week with net selling at Rs 297.43 million. The foreign activities became less attractive during the week with a dip of 26.4 percent and 40.4 percent of foreign purchase and foreign sales against last week. The average foreign purchases were recorded at Rs 205.14 million as against Rs 278.83 million last week while average sales were accounted at Rs 264.63 million as compared to Rs 443.93 million last week.

Malwatte (Non Voting) emerged as the top gainer of the bourse with the scrip closing at Rs 62.50 recording an increase of 37.06 percent from last week. Agalawtte and Kahawatte followed highlighting a growth of 26.51 percent and 24.44 percent over last week. Agalawatte and Kahawatte contributed turnover of Rs 30.7 million and Rs 22.4 million respectively.

Parquet appeared as the major loser of the week, scrip closing at Rs 21.1 showing a dip of 27.24 percent over previous week. Confifi Hotel and Blue Diomands were other loses in the bourse slipping the price by 12.93 percent and 12.82 percent respectively.

The year to date return of the Colombo bourse remains at 96.01 percent making it Asia’s best performing stock exchange for 2010. It being a benchmark year with peak index of 7147.8 in early October. Key sectors at bourse showed a robust growth highlighting an upward movement in all sector indices. MPI also indicated YOY increase of 83.42 percent.

Aggregate market turnover and volumes reflected growth of 299 percent and 277 percent respectively. Market P/E at 25.2 as against 16.55 in 2009. During the year nine new listings were made with total market cap of Rs 6.2 billion.

In the ensuing week the bourse commences its activity following new set of guidelines.

Backed with retail participation as witnessed towards year end, sound earnings potential, estimated 75 new IPOs in the coming year and with the positive macro economic outlook, infrastructure developments, favourable fiscal and monetary policies we expect the bourse to remain a lucrative investment hub.

source - www.dailynews.lk