Monday, April 4, 2011

Buy wise in new FY

The ASPI initially shed points but by the fourth day of trading, had begun its upward path to close off at 7377.22, which is 136.95 points ahead of last week, an increase of 1.8 percent. The MPI also shed some points on the second and third day of trading, but gained towards the latter part of the week to close at 7024.63 up by 186.61 points or 2.73 percent.

The weekly turnover dipped in value to Rs 9.82 billion, from that of the previous week of Rs 14.35 billion, a contraction of 31.59 percent. Similarly, turnover in volume also shrank by 8.37 percent to 296.79 million as against 323.9 million shares that were transacted last week.

The Banking and Finance sector contributed over 52 percent of the week’s turnover in value and over 42 percent in volume, driven by trading in Commercial Bank and Union Bank secondary market share transactions and also trading in Sampath shares. Both Manufacturing and Diversified sectors which accounted for 8.4 percent and 8 percent respectively of the week’s turnover in value while the other major contributor to the week’s turnover value was Investment Trusts. In terms of turnover volumes, Manufacturing accounted for 17.7 percent and Power and Energy accounted for 12.9 percent.

Commercial Bank was the highest turnover generator this week as its share recorded Rs 1.43 billion, accounting for more than 14.6 percent of this week’s total turnover.

The stock traded within a band of Rs 260.10 to Rs 273.40 and closed at Rs 267.50 while nearly 5.32 mn shares changed hands.

Union Bank was placed as second highest Turnover generator with 25.27 million shares changing hands to bring in Rs 996.8 million, representing over 10 percent of total turnover for this week. Other major contributors to turnover this week were Sampath Bank, and Central Finance.

Union Bank emerged as the top gainer of the week recording a robust growth of 46 percent on its IPO price of Rs 25. Singlanka also climbed up the gainers list outlining an increase of 31.3 percent in comparison with last week.

The stock closed at Rs 985.00. HDFC, Nation Lanka and Gestetner stock prices recorded an upward momentum of 25.2 percent, 21.2 percent and 19.9 percent respectively.

Tea Smallholders was the top loser for the week reporting a decrease of 21.1 percent vis a vis last week. The stock closed at Rs 177 in comparison with last week’s price of Rs 224.50. Lake House Printing recorded a decline of 17 percent the share price closing at Rs 124.50.

Kuruwita Textile, ACL Plastics and Hunters were amongst the major losers recording a price decline of 9.8 percent, 9.2 percent and 8.9 percent respectively.

Foreign investor interest was renewed this week as selective buying boosted the total value of foreign purchases to Rs 4.25 billion, an increase of more than 750 percent as against last week’s total buying of Rs 498.84 million.

The total foreign sales also contracted from last week declining by 18.8 percent to record Rs 2.04 billion as against last week’s Rs 2.51 billion.

Foreign investors closed the week as net buyers amounting to Rs 2.2 billion as against a net sellers position last week amounting to 2.01 billion.

Union Bank topped the Volume chart on its debut week

While Pan Asia Bank followed in second place, trading 24.6 million shares with a turnover of Rs 96.11 million, as the stock closed at Rs 4.00. Piramal Glass also featured this week with 24 millionshares changing hands generating a turnover of Rs 178.50 million, as the stock closed at Rs 12.10. Sierra Cables was another popular stock traded this week, at a closing price of Rs 2.10.

Market activity during the week continued to be dominated by retail investors clearing positions however, witnessed institutional interest on selected stocks and consolidation of strategic holdings. Both indices gathered momentum towards the latter part of the week’s trading on relatively lower turnover values. Investor interest in Union Bank which made its debut in the market on 29 was prevalent generating a turnover value of Rs 996.8 million while the scrip gained 46 percent on its IPO price.

GDP for Q4 2010 recorded an 8.6 percent growth amounting to Rs 676.8, bringing the annual GDP value for 2010 to an estimated Rs 2.64 trillion registering a growth of 8 percent as against 2009.

Agriculture, Industry and Services recorded growth levels of 7 percent, 8.4 percent and 8 percent respectively, while the key sub sectors that recorded significant growth levels for 2010 were tea, rubber, minor export crops, hotels, mining and quarrying, construction, paddy, fishing, transport and telecommunication.

Backed by the favourable macro economic environment and the start of a new financial year for most corporates we expect buying interest in fundamentally sound stocks, mid caps to pick up during the weeks ahead.

source - www.dailynews.lk

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