Saturday, February 19, 2011

CSE continues to rise

During the short trading week the All Share Price Index (ASPI) gained 85.86points to close 7,672.49 points, while the Milanka Price Index (MPI) shed 17.66 points to close at 7,242.15 points. The daily average turnover was SLRs. 3.2bn compared to SLRs. 4.4bn last week and the week ended with foreign buying amounting to SLRs. 2.2bn whilst foreign selling was SLRs.3.5 bn.

On Monday the indices moved in inverse directions as ASPI closed up 225.19 points while MPI closed down 11 points with a total turnover of SLRs. 5.3bn for the day. HNB was highlighted as it generated the day’s largest turnover of SLRs. 1.7bn which included purchases by foreign funds and sales by both foreign funds and local individuals. There were six crossings amounting to 3,658,400 shares at 410.00 and the counter closed up SLRs.10.60 with more than 4.2mn shares changing hands. In anticipation of higher earnings based on high commodity prices heavy investor interest was seen on the conglomerate Carson Cumberbatch and its group companies. Selinsing PLC, Shalimar PLC and Good Hope PLC, entities with interest in the oil palm sector were the top three gainers for the day with counters closing up 49.6%, 49.4% and 47.2% respectively.

Holding company Carson Cumberbatch closed up 21% while the other group companies Ceylon Guardian Investment Trust, Indo-Malay PLC, Bukit Darah and Ceylon Investment PLC gained 44%, 37%, 38.8% and 25.85% respectively. Based on the day’s closing prices Bukit Darah has a Price Earning (PE) ratio (based on annualized EPS) of 12.2 and Price to Book Value 0f (PBV) of 50.1 while Carson Bukit Cumberbatch has is trading at a PE and PBV of 37.4 and 6.99 respectively.

HVA Foods Ltd. Commenced trading on Tuesday at a price of SLRs. 24.00 and the counter closed at SLRs.26.30, up by SLRs.10.30 from the issue price of SLRs.16.00. Approximately 20mn shares of the counter were traded contributing with a turnover of SLRs.523mn for the day’s total turnover of SLRs.4.4bn.

Lanka Ashok Leyland posted the day’s largest turnover of SLRs. 1.1bn as 465,500 shares were traded with the counter closing down 21.43% at SLRs.2,383.30. Approximately 1.5mn shares of Ceylon Tea Services were traded generating the day’s second largest turnover of SLRs.943mn. Most of the shares were bought by local individuals while the seller was a foreign fund.

ASPI declined sharply by 204.03 points as investors booked profits in the Carson Cumberbatch group related companies which gained sharply on the previous day.

Market recovered on Friday as both ASPI and MPI closed up 64.70 points and 17.48 points respectively.

 Total turnover for the day remained relatively low at SLRs. 1.9bn as most investors were away for the extended weekend. Biggest contribution to the turnover was made by Brown & Company with the counter closing up 7.43% posting a turnover of SLRs. 189mn with 652,700 shares traded.

Lankem  Ceylon and Colombo Fort Land & Building Company also made significant contributions with turnovers of SLRs.93mn and SLRs.89mn respectively. Lankem Ceylon closed up 5.91% at SLRs.494.00 with 189,800 shares traded while Colombo Fort Land & Building Company closed up at SLRs. 538.00

Indices continue to gain as positive interim results are released by companies. ASPI has gained 15.62% since the beginning of 2011. We expect the market to reach further highs as Banks release their year end financial results in the coming weeks.

source - www.dailymirror.lk

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