Heavy retail investor activity

The two day trading week saw indices climb up as the ASPI shot up 160.9 points, an increase of 2.1 percent to close at 7574.86 while the MPI showed a marginal increase of 43.03 points, an increase of 0.61 percent.

The weekly turnover amounted to Rs 6.06 billion with a daily average turnover of Rs 3.03 billion boosted by today’s trading in Bukit Darah and Carsons, indicating an increase of 84.8 percent as against the daily average turnover recorded last week amounting to Rs 1.64 billion. Average daily turnover volumes however shrank by 19.3 percent to 34.68 million from the daily average turnover in volumes recorded last week of 42.98 million. Despite the holiday season the market recorded marginally more daily average trades this week than that of last week. Market capitalization at the close of trading for this week was Rs 2,550 billion.

The highest contributor to the weekly turnover value was the Oil Palms sector with 23.7 percent contribution driven by transfers of shares in Carsons and Bukit Darah due to company re-structuring activities. Second highest contributor to turnover was the Diversified sector, seeing a contribution of 21.2 percent to the weekly turnover.

The Banking and Finance sector was the third highest contributor this week with 18.7 percent of total turnover. Bukit Darah represented 23.6 percent of the aggregate market turnover during the week recording Rs 1.4 billion while 1.1 million shares changed hands. Carsons contributed 15.7 percent of market turnover accounting for Rs 953.8 million with Commercial Bank, Browns and Lion Brewery emerging as other high turnover generators recording turnover values of Rs 561.8 million, Rs 313.5 million and Rs 245.4 million respectively.

Gestetner, this week’s Top Price Gainer closed the week at Rs 257.00, up 75 percent from the previous week’s price of Rs 146.50, while Morisons share price rose by 39 percent to close at Rs 3466.00 from last week’s price of Rs 2,500. Third highest Price Gainer was Huejay which recorded an increase of 32 percent as the share closed at Rs 149.20 from last week’s price of Rs 113.

Cold Stores was amongst the top losers reporting an 8 percent loss on last week’s price of Rs 815.00 to close at Rs 750.10. Colombo Pharmacy showed a decrease of 5.3 percent to close at Rs 3,125.00 from last week’s price of Rs 3,300.00. Convenience Food, Chemanex and Finlays Colombo were other losers in the market indicating a drop of 5.2 percent, 5.2 percent and 4.8 percent respectively. Foreign investor participation in the bourse showed an increase this week as average buying increased by 39.7 percent and average selling also increased by 552.5 percent as foreigners bought on average Rs 241.1 million worth of shares and sold shares worth Rs 732.8 million. The daily average foreign buying last week was Rs 172.5 million whilst selling was Rs 112.2 million. Foreigners closed the week as net sellers amounting to Rs 983.3 million. SMB Leasing shares were the most traded this week as it accounted for 7.9 percent or 5.5 million shares, of the week’s total turnover in volume.

The share closed at Rs 2.10. Second highest contributor to volume was PC House as 4.06 million shares were traded accounting for 5.8 percent of the week’s turnover in volume. PC house share closed at Rs 21.10.

Point of view

The week witnessed heavy retail investor activity in the Bourse while significant investments in selected fundamentally sound stocks such as Browns, Commercial Bank, Hayleys, Bukit Darah and Carsons took place. 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.

source - www.dailynews.lk