Thanks to the return of improved sentiments the Colombo bourse moved back to Rs. 2.5 trillion value and more importantly the active Milanka Price Index shifted to the green territory as well.
Despite the shortened trading week there was much cheer ahead of the Sinhala and Tamil New Year holidays as market capitalisation rose by Rs. 55 billion in two sessions to finish the week at Rs. 2.55 trillion mark. This however is still Rs. 50 billion less in comparison to the mid-February peak of Rs. 2.60 trillion.
The Milanka Price Index (MPI) also ended on a positive note with a year to date gain of 0.04% at 7,064 points, higher by 456 points or 7% from its lowest of 6,608 points this year. Its year to date highest was 7,327 points suggesting there is more room for upward movement.
The benchmark All Share Index has managed to recover much of the lost ground as it closed the week with 14.1% year to date gain, still lower in comparison to 17.7% gain enjoyed as at mid-February.
Given the attractiveness improving by 9% on the basis of market’s current Price Earnings Ratio of 26.89 times versus mid-February peak of 29.53 times most analysts believe fresh round of buying is warranted.
Release of impressive results by 31 March financial year ending companies as well as improved economic outlook despite global shocks are some of the fundamental reasons why brokers expect a further strengthening of investor sentiments this week onwards.
“The current momentum of the market is expected to continue onto the week ahead as investors get into gear in anticipation of the positive quarterly earnings which are yet to be released,” opined Acuity Stockbrokers.
Last week also saw heavy retail investor activity in the Bourse while significant investments in selected fundamentally sound stocks such as Browns, Commercial Bank, Hayleys taking place though top gainers percentagewise continued to be illiquid counters.
source - www.ft.lk
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