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Tuesday, January 22, 2013

Bourse down 0.23 percent

The Colombo bourse fell 0.23 percent yesterday (21) with foreigners becoming net sellers.

The All Share Price Index closed 0.23 percent lower, down 13.75 points, to 5,862.02 while the S&P SL20 closed virtually flat at 3,174.11, down 0.25 points, or 0.01 percent.

Turnover amounted to Rs. 899.87 million.

Foreign selling amounted to Rs. 526.9 million resulting in a net outflow of Rs. 370.9 million.

Crossings in Commercial Bank, Sampath Bank, Environment Resources Investments and JKH propped up turnover.

CIT was the biggest loser falling 19.36 percent to close at Rs. 131. SEMB.N fell 10 percent to close at Rs. 1.00. KURU fell 8.48 percent to Rs. 20.50.

SEMB.X was the biggest gainer, closing 25 percent higher at 50 cents. MIRA closed 12.86 percent higher at Rs. 93 while HEXP closed 9.67 percent higher at Rs. 34.

Brokers expect the market to pick up in the short to medium term with interest rates forecast to fall.

"The ASPI ended lower amid sharp drops in some large and mid cap counters. Turnover was dominated by a block trade on GREG, which accounted for over 45% of turnover. The market also saw crossings on COMB and JKH," John Keells Stockbrokers said.

According to DNH Financial: "While market PEs have been on a recovering trend, we believe that the current multiple of 16.6X does not still fully reflect the valuations of a number of fundamentally strong stocks which are trading at notable discount to the market multiples. With investors having pushed up the price of lower quality companies during the past bull run, an opportunity to invest in companies of higher fundamental value now exists with significant upside potential of reversing relative underperformance. With trading volumes showing increasing trend, we believe that the market is starting its rerating process. Consequently, with the 3Q2013/4Q2012 results yet to be released, we advise investors to take advantage of this window period to select stocks that are likely to outperform based on solid intrinsic values."

source - www.island.lk