Monday, January 10, 2011

New Year bonanza for bourse

The optimistic sentiments ran through the week as indices gained each week day adding healthy turnover to the bourse. ASPI closed at 6,891.96 adding 256 points and was up 3.86 percent. MPI gained 225.42 points reflecting a growth of 3.19 percent against last week to end at 7,286.88.

Major contributors to the upward momentum were Banking, Finance and Insurance, Diversified and Manufacturing at 15 percent. Market turnover was up both value and volume wise by 128 percent and 179 percent respectively.

Aggregate weekly turnover more than doubled with Rs 15 billion as against Rs 6.5 billion in the preceding week.

Average daily turnover for the week increased to Rs 3 billion over Rs 1.3 billion last week. Market capitalization improved to Rs 2,297 billion as against Rs 2,210 billion in the previous week. Market P/E Ratio improved to 26.1 and PBV to 3.2.

Point of view

The bourse ushered in the year with optimistic sentiments leading to active trading and healthy turnover backed with commencement of margin trading and return of retail investors.

We expect the movement to persist in the ensuing week, profit taking on several counters after a certain level is likely while fundamental stocks will be sought after by the investors.

Banking, Finance and Insurance continued to lead the turnover at 18.92 percent followed closely by Diversified at 18.8 percent while Manufacturing ended at 15.03 percent. The aggregate Banking turnover for the week was at Rs 2.83 billion with volumes of Rs 615 million. JKH and RICH together added nearly 15 percent to the Diversified sector.

Laugfs lifted the Manufacturing sector; the Company invested Rs 500 million in mini hydro plant and also entered into JV with BPCL of India for innovative metal cutting.

Banking, Finance and Insurance at 57.92 percent remained the foremost contributor to the market volumes with SMB Leasing both voting and Non Voting and Amana Takaful Insurance being the major contributing counters.

The volumes traded in the sector rose to 616 million as compared to 208 million shares of the preceding week.

JKH was at the top of the turnover chart with 7.71 percent share amounting to Rs 1.15 billion as couples of crossings were recorded in the scrip during the week. Richard Pieris was at 6.97 percent with contribution of Rs 1.04 billion and the scrip closed at Rs 13.4.

The most traded stock for the week was SMB Leasing both non voting and voting with 156.5 million and 103.5 million shares respectively adding 15 percent and 10 percent while Richard followed with 82 million shares.

The bourse closed as net foreign sellers maintaining the selling momentum as last week. Foreign purchases recorded Rs 850 million and sales accounted for Rs 1,872 million. The foreign purchase noted a dip of 17.1 percent while sales recorded an increase of 41.5 percent against last week.

Citrus Leisure dominated the bourse as the top gainer with scrip closing at Rs 73.7 reflecting an increase of 72.6 percent against last week. Kotmale Holdings scrip recorded an increase of 62.5 percent reporting a turnover of Rs 176 million. following additional 8 percent acquisition by Cargills (Ceylon) Plc.

Laugfs Gas (Non Voting) and E B Creasy emerged as other top gainers recording a rise of 61.08 percent and 56.82 percent respectively. Morisons outlined as the major loser of the bourse during the week accounting a slip of 18.69 percent, followed by Selinsing and Good Hope accounting a dip of 18.18 percent and 17.25 percent compared to last week with scrip closing at Rs 450 and Rs 455.10 respectively.


source - www.dailynews.lk

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