Foreign investors boost bourse

The four day week at Colombo bourse ended with slipping indices. ASPI shed 46.9 points down by 0.61 percent to end at 7,664.72 while MPI dropped by 139.93 points to close at 7,029.42. The weekly turnover clocked at Rs 15.28 billion with major contribution of Rs 7.68 billion coming in towards the close of the week. The daily average turnover was strengthened to Rs 3.82 billion as against Rs 2.54 billion of the previous week. Healthcare, Banking and Manufacturing were the driving sectors for the market turnover. The healthcare segment added 31.04 percent to the total turnover with Rs 4.74 billion while Banking Finance and Insurance and Manufacturing shared 15.91 percent and 13.87 percent in weekly turnover with Rs 2.4 billion and Rs 2.12 billion respectively.


Lanka Hospitals rallied high turnover in Health sector with 30.19 percent share amounting to Rs 4.6 billion. Banking sector was supported by Commercial and Sampath Bank while Grain Elevators and Piramal Glass were the counters that added to the Manufacturing sector. Healthcare ruled the market volumes with 29.27 percent share while Banking and Manufacturing sectors stood at 23.25 percent and 13.2 percent of the total volumes. Investment Trust index reflected a positive week on week change of 5,140.86 points. Market capitalization was recorded at Rs 2.56 trillion at the close of the week.

Lanka Hospitals topped the market price this week closing at Rs 51.80 witnessing an increase of 37 percent as compared to previous week. The increased price was on account of strategic foreign buying. Capital Development and Investment Company noted a climb of 36 percent closing at Rs 225 compared to Rs 165 in the previous week.

Commercial Development closed the week at Rs 78.70 reporting a rise of 33 percent, generating a turnover of Rs 3.2 million.

Top loser for the week was Eastern Merchant closing at Rs 600 recording a dip of 21 percent in comparison with last week. Colombo Pharmacy closed at Rs 3,080 accounting a decline of 19 percent. Morisons (Non Voting and Voting) and Sinhaputhra Finance reported a decline of 18 percent, 17 percent and 15 percent respectively.

After a long haul of three months substantial foreign buying was witnessed in the bourse. The weekly inflow was recorded at Rs 4.7 billion as against selling of Rs 1.28 billion making the net foreign buying at Rs 3.4 billion.

The big chunk of foreign buying was observed in Lanka Hospitals where Fortis Healthcare bought 28.6 percent stake of Distilleries. More foreign participation is indicated in the market by way of investment to the tune of Rs 2 billion via private placement route by three UK based funds in the equity of CT Holdings.

Healthcare segment topped the weekly volume charts with Lanka Hospitals and Nawaloka contributing 21 percent and 8 percent to total volumes. The aggregate volumes for the week for Lanka Hospitals and Nawaloka were marked at 76 million and 29 million shares respectively. The other scrips that drive the volumes were Piramal Glass, Laugfs, SMB Leasing (Voting and Non voting) and Dialog.

Activity level at the Colombo bourse was regained towards the end of the week resulting in healthy rise in turnover and volumes.

The retailers continued to dominate the market and profit taking was noted across several counters. The market bounced back with renewed foreign interest as witnessed in the week's highlight of foreign investment in healthcare stock and also likely entry of foreign funds through private placement route. We expect the positive drive to persist in the coming week with interest in counters relating to key growth sectors.

source - www.dailynews.lk