Thursday, May 3, 2012

Bourse continues to struggle

The Colombo stock market continued to struggle yesterday, whilst activity levels were relatively low.

 The ASPI dipped marginally to close at 5,417.2 points (-0.04%) whilst the MPI also dipped 20.5 points to close at 4,830.7 points (-0.42%).

“Market continued its slow run despite the crossings in John Keells Holdings, Infrastructure Developers, Central Finance and Asia Asset Finance. These four deals assisted to breathe in 38% into the daily turnover whilst adding in 7.7 million to the day’s volume of 36.7 million,” Arrenga Capital said.

It said successful investors are the ones that flip over as many stones as possible. “Thus, pick the hidden gems among the bargains. The task of unveiling such beaten down stocks could be led by analysing the strength of their earnings potential, stable cash position and a steady management.

However, the traditional way to handle this sideway performance of the market would be to increase exposure to the high dividend yields,” Arrenga added.

 It said retail play was evident in Swarnamahal Financial Services as several quantities exceeding 50,000 shares were seen moving hands on board. The counter dipped 1.1% at its close of Rs. 8.8 after touching a high of Rs. 9.1.

 Another retail favourite, Amana Takaful, was seen among the active list for the day as two blocks adding to 6.5 million shares were picked on board at Rs. 2. Kotagala Plantations and CW Mackie too registered sizeable on-board transactions of 204.600 shares at Rs. 70 and 150,000 shares at Rs. 70 respectively.

 Mega-Cap, Carsons Cumberbatch, managed to gather some investor attention though on narrow quantities. The counter closed flat at Rs. 469.8 for the day. A crossing of 333,000 shares took place at Rs. 204 on John Keells Holdings whilst Central Finance too registered a block of 123,00 shares at Rs. 165.

 Asia Asset Finance saw a parcel of seven million shares being crossed off at Rs. 3.50 whilst Infrastructure Developers witnessed a 290,000 share crossing done at Rs. 175 (a 10% premium to Monday’s close of Rs 158.9).

 Active banking sector counters for the day were Commercial Bank (up 0.1%), Hatton National Bank [Non-Voting] (down 0.93%) and Nations Trust Bank (up 0.57%).

 The market saw a net foreign inflow of Rs. 24.5 million bringing the year to date inflow to Rs. 21.3 billion. ASI’s year-to-date negative return was 10.8%.

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