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Sunday, February 26, 2012

Acuity says market upturn will continue this week

The Colombo Stock Market gained momentum last week with the All Share Price Index gaining over 250 points with turnover hitting a high of Rs.3.7 billion on Thursday, Acuity Stockbrokers said in a market report.

This turnover figure of Rs. 3.7 billion was a high for 2012, the brokerage said.

Foreign investors remained net buyers for the second consecutive week, pushing the market’s year-to-date net inflow to Rs.2.81 billion against a net outflow of Rs.7.09 billion during the comparative period a year earlier.

"Positive sentiment and robust market fundamentals boosted overall markets although investors adapting to the new trading system dampened Friday’s volumes," Acuity said.

The brokerage expected the positive momentum to continue this week.

The ASPI gained 281.13 points (5.32%) last week while the Milanka was up 253.35 points (5.57%), although it is still below the 5,000 point benchmark closing the week at 4,802.78 points.

Average daily turnover last week at Rs.1.71 billion was down a marginal one percent from the previous week’s daily average of Rs.1.73 billion.

Turnover was dominated by LB Finance, Hayleys and Aitken Spence which together contributed 40.79% of last week’s turnover.

Brokers said that Mr. Dhammika Perera acquiring Royal Ceramics-owned 7% of Hayleys and selling his LB Finance holding to Royal Ceramics where he is controlling shareholder accounted for much of the week’s turnover.

The Acuity report noted that active foreign participation had continued with foreigners posting a net buying position of Rs.1.18 billion against the previous week’s net buying of Rs.1.17 billion.

However net foreign purchases during the week were down 39.7% to Rs.334.8 million against the previous week’s Rs.555.4 million.

John Keells Stockbrokers (JKSB) reported that the indices continued a positive trend appreciating over 5% week-on-week "with strong activity dominated by large trades on LB Finance and Hayleys along with trades centered on large caps."

JKSB said that the foreign inflow of Rs.1.18 billion was driven by trades on Commercial Bank.

source - www.sundayisland.lk