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Monday, July 30, 2012

Foreign inflows into bourse sees significant improvement

Foreign inflow into the Colombo Stock Exchange witnessed a significant improvement in the past week of activity, with a consistent net inflow being achieved in the entire week. Foreign purchases totaled Rs.689m while the net inflow for the week stood at Rs.579m. On some days in the week the net inflow recorded a high percentage of over 50% of total turnover.

The two major indices of the Colombo Stock Exchange were looking up by the end of the week due to a surge in prices on Friday. The ASPI registered a gain of 44.87 points to close at 4933.09 while the Milanka Index too increased by 44.97 points to close at 4298.17. On news of good earnings results, John Keells Holdings boosted investor confidence helping its share price to increase to Rs. 184.00 from the previous day’s close of Rs.177.90. The group posted a net profit attributable to shareholders of Rs.1.6b for 1Q ending 30th June 2012 versus Rs.1.2b for the corresponding period in the prior year, up 34%.

The turnover achieved on Friday in the past week was Rs.425.7m and the high turnover could be attributed to transactions in the shares of Odel. Its shares which were fetching prices at Rs.18.00 levels prior to the announcement of the purchase of a 41.8% stake in the company by Parkson Retail Asia for Rs.1.4 billion, shot up to Rs.26.90 on Thursday. Nearly 2.14m shares in Odel changed hands at varying prices and closed at Rs.25.80. The company is expected to make a mandatory offer at Rs.23.50 and is also expected to make a rights issue of 1:1 at Rs.20.00 in order to raise an additional sum of Rs.2.9 billion for further expansion.

One of the much sought after stock with the bout of bullishness experienced on Friday was NDB Capital which fetched prices in the range of Rs.260.00 to Rs.320.00. While the shares of AVIVA NDB too witnessed a demand for its stock, which fetched prices in the range of Rs.175.00 to Rs.300.00.

Other heavily traded stocks during the week were Carsons at Rs.449.00 to Rs.462.00, Commercial Bank non voting at Rs.75.00 to Rs.77.00, DFCC at Rs.105.3 to Rs.110.50, Lafghs Gas non voting at Rs.12.90 to Rs.13.80 and HNB non voting at Rs.89.00 to Rs.91.50.

(Courtesy: Innovest Investments (Pvt) Ltd – an Investment Management Company licensed by the Securities & Exchange Commission of Sri Lanka)

source - www.island.lk