Monday, November 12, 2012

Upward momentum at the bourse

Stock Market Review for the week ending 09th November 2012:

Trading for the week started off on a rather positive note with both the indices closing slightly higher. The ASPI and Milanka gained 7 and 14 points to close at 5,539 and 5,085 respectively. However an insignificant turnover of only Rs. 161 million was recorded for the day. Foreign interest in John Keells Holdings continued with the counter dominating trades for the day followed by HNB and Lion Brewery. Retail interest was witnessed amongs stocks that included Environmental Resource Investments and Renuka Agri Foods. The shares of JKH gained Rs. 1.50 to close at Rs. 211.20, while HNB lost cents -/30 to close at Rs. 145.00. The shares of Lion Brewery and Renuka Agri Foods closed flat at Rs. 255.00 and Rs. 5.00 respectively. Active counters which included Enviromental Resources closed cents -/10 higher at Rs. 15.40. A net foreign inflow of Rs. 47 million was seen during the day.

On Tuesday, the market continued its upward momentum with both indices gaining despite thin volume and turnover levels. The ASPI and Milanka gained 17 and 12 points to close at 5,556 and 5,102 respectively. Turnover recorded for the day was Rs. 231 million. A renewed interest in banking sector counter was witnessed with Seylan Bank (Non-voting) and DFCC being the top two turnover contributors for the day followed by Indo Malay. Institutional investors were mostly active in the market while retailers remained inactive. Both Seylan Bank and DFCC increased by Rs. 1.00 to claose at Rs. 35.00 and Rs. 108.00 respectively. Indo Malay closed flat at 1,421.00. A net foreign inflow of Rs. 16 million was seen for the day.

On Wednesday, the indices closed higher with both the ASPI and Milanka gaining 14 and 28 points to close at 5,570 and 5,130 respectively. A turnover of Rs. 250 million was recorded. Interest in the banking sector continued from the previous day with HNB (Non-voting) leading turnover with a block changing hands at Rs. 114.00. Commercial Bank was the second highest in turnover followed by Asiri, Central Finance and Carsons. These counters attracted foreign and institutional interest, while retailers remained inert. The share price of HNB (Non-voting) gained Rs. 1.50 to close at Rs. 144.00. Commercial Bank closed flat at Rs. 103.80 while Commercial Bank non-voting gained Rs. 1.80 to close at Rs. 93.00. Central Finance gained Rs. 3.50 to close at Rs. 170.00. A net foreign inflow of Rs. 40 million was seen for the day.

The market closed on a mixed note on Thursday with the ASPI gaining 9 points to close at 5,580 while the Milanka closed lower by 2 points at 5,127. A turnover of Rs. 539 million was recorded on the back of Chevron Lubricants, which saw four crossings totaling 1.3 million shares at an average price of Rs. 203.40. Foreign interest continued in both Commercial Bank voting and non-voting. The share of Chevron Lubricants increased by Rs. 4.80 to close at Rs. 199.40. Commercial Bank (Normal) lost -/80 to close at Rs. 103.00 while the non-voting share gained Rs. 2.00 to close at Rs. 95.00. Warrants of Environmental Resource Investments saw significant improvement with Warrant 3 gaining 8.9% to close at Rs. 4.90 and Warrant 6 up by 8.2% to close at Rs. 5.30. Foreigners were net buyers recording net foreign inflow of Rs. 299 million.

On Friday the market closed on a positive note with the ASPI gaining 8 index points, MPI gaining 25 points. The positive market sentiment was spurred by several encouraging initiatives for capital market development proposed in the 2013 Budget. With pessimism gone, market turnover snowballed to reach Rs.986 million, boosted largely due to three crossings in Environmental Resource Investments counters (voting and warrants). which were also the top contributor to the turnover. Other main contributors to the turnover were JKH with Rs.160.7mn and Environmental Resources - warrant 0006 with Rs.124.5mn.Further, Dankotuwa Porcelain, Nation Lanka and Maskeliya Plantations – Rights recorded highest volumes for the day.

(Courtesy: Innovest Investments (Pvt) Ltd – an Investment Management Company, founded by Dian Gomes, Ajit Jayaratne & Arosha Gunasekera, and licensed by the Securities & Exchange Commission of Sri Lanka)

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