Monday, February 28, 2011

Retail rally continues

The ASPI gained 39.13 points or 0.51 percent during the week’s trading to close at 7711.62 while the MPI lost 72.81 points amounting to 1.01 percent to close the week at 7242.16.

Total turnover for the week was Rs 12.71 billion with daily averages amounting to Rs 2.54 billion as against the daily average turnover recorded last week of Rs 3.89 billion recording a decline of 34.8 percent.

Trading volumes have been thin this week with a 17.25 percent decline in volumes traded.

Turnover has been driven by activity in the Banks, Finance and Insurance sector which has contributed 20.35 percent to total turnover for the week amounting to Rs 2.58 billion led by investor interest in Sampath Bank and Commercial Bank.

The Manufacturing sector accounts for 19.26 percent of the weekly turnover amounting to Rs 2.45 billion while the Diversified sector counters also have recorded a 15.89 percent contribution to the week’s turnover.

Trading on JKH amounts to 6.7 percent of the week’s turnover value with the share trading within a price range of Rs 289 and Rs 297 to close the week at Rs 290. Market activity by volume was led by the Manufacturing sector amounting to 31.94 percent while the Banking sector counters amounted to 23.33 percent of total volumes.

The oil palm sector saw heavy retail interest during the past few weeks with the sector indices continuing to record substantial gains.

Carson Cumberbatch Plc and Bukit Darah Plc announced its intention to make a voluntary offer to the minority shareholders of Shalimar, Goodhope, Selinsing and Indo Malay.

Colombo Pharmacy topped the list of Price Gainers this week, with the share price rising by 110.6 percent over previous week’s to close at Rs 3,790.90 from opening price of Rs 1800.00. Union Chemicals also recorded a 108.1 percent gain to close at Rs 667.00 which was the highest price recorded.

The other top gainers for the week were Industrial Asphalts, Convenience Foods and Eastern Merchants.

Top losers for the week were Guardian Capital recording a 78.7 percent loss to close at Rs 1,942.20 from last week’s close of Rs 9,100.

CIT closed the week at Rs 490.00 losing 20.2 percent from the previous week’s close of Rs 614.00 while Selinsing also recorded a 15.4 percent loss in its trading price to close at Rs 1100.00.

Foreigners remained sellers this week although with less pressure as week on week net selling dropped by 60.8 percent, with the daily average net selling of Rs 171 million compared with last week’s daily average selling of Rs 438 million.

Average foreign purchase decreased by 74.9 percent to record daily average purchase at Rs 186 million as against last weeks Rs 745 million and average selling witnessed a decrease of 69 percent against last week with 1.7 million recorded this week compared to last week’s Rs 1.18 million.

Piramal Glass saw continued investor interest with the scrip being the most traded this week with 57.3 million shares changing hands adding on a value of Rs 572.87 million to Turnover.

The share was also one of the top gainers this week gaining 17.39 percent to close at Rs 10.80. SMB Leasing, Richard Pieris, Laugfs Gas and Nawaloka also were retail interest during the week.
 
Point of view

Trading at the Colombo bourse this week was dominated by retail interest in selected stocks however, on thin volumes with the indices closing on a mixed note. We expect the current sentiment and momentum to continue into the week ahead.

An estimated 50 IPOs are planned in 2011 with approximately 10 to enter the market before April and the resulting increase in Market Capitalisation will strengthen the bourse.

The SEC has also announced plans for a growth focused regulatory framework for 2011, while reducing the 10 percent share price band restriction from 15 to 10 days and 50 percent credit issue also being waived.

Minimum free float requirements and regulations on private placements prior to IPOs is also expected to strengthen investor confidence.

source - www.dailynews.lk

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