Monday, January 7, 2013

Retail, foreign activity give bourse a lift

Stock Market Review for the week ending 04th January 2013:

 Trading for 2012 ended in a positive note on Monday with the ASPI closing higher by 36 points at 5,643 despite the Milanka losing a point to close at 5,119. However low activity levels were witnessed recording a turnover of Rs 289 mn. Interest in blue-chip counters persisted with foreigners eyeing attractive counters. The top contributor to market turnover for the day was Nestle followed by Sampath Bank, JKH and Textured Jersey. The share price of Nestle gained Rs 50.00 to close at Rs 1,550.00 while Sampath closed Rs 1.00 lower at Rs 200.00. Textured Jersey gained cents -/10 to close at Rs 9.00. A net foreign inflow of Rs 106 mn was recorded for the day; cumulating into a total net foreign inflow of Rs 39.2 bn for the year 2012. Furthermore the Milanka Price Index will be discontinued from the 31st and will be replaced by the S&P SL20.

The market opened for 2013 on Wednesday, following a special CSE holiday on the 1st. The ASPI ended higher by 41 points at 5,684 and the S&P SL20 up by 6 points at 3,091. Improved activity levels were recorded with turnover crossing Rs 1.6 bn on the back of a foreign to foreign share transfer in Commercial Bank which accounted for circa 80% of the market turnover. Other top contributors for the day were Nation Lanka Finance and Asia Asset Finance. The share price of Commercial Bank gained Rs 1.00 to close at Rs 103.00. Nation Lanka Finance gained Rs 1.30 to close at Rs 11.10 while Asia Asset Finance gained cents -/10 to close at Rs 2.90. A marginal net foreign outflow of Rs 17 mn was recorded for the day.

The positive momentum continued into Thursday with the ASPI edging up by 55 points at 5,730 and the S&P SL20 up 13 points at 3,104. A moderate market turnover of Rs 518 mn was witnessed on the back of several crossings in blue-chips which collectively accounted for over 40% of market turnover. HNB headed the highest contributors list followed by JKH, Nation Lanka and Peoples Leasing. The share price of HNB lost Rs 1.20 to close at Rs 147.00 while JKH closed flat at Rs 219.00. Meanwhile Nation Lanka lost cents -/10 to close at Rs 11.00 and People Leasing gained Rs 1.00 to close at Rs 14.20. A net foreign outflow of Rs 105 mn was witnessed during the day.

On Friday, the market sustained its upward trend with the ASPI ending by 17 points higher to close at 5,748 and the S&P SL20 up by 17 points at to close at 3,121 points. Market activity levels improved over the previous day, with turnover surpassing the Rs 1 bn mark. Crossings in JKH helped to propel the counter to head the top contributors list followed by HNB and Asiri Surgical. The share price of JKH lost cents -/10 to close at Rs 219.90 while HNB gained Rs 3.00 to close at 148.50. Asiri Surgical gained cents -/20 to close at Rs 9.40. Also, retail interest in Pan Asian Power was witnessed as the counter gained cents -/40 to close at Rs 2.90. A net foreign inflow of Rs 418 mn was recorded.

Market sentiments remained positive throughout the week and are likely to remain so within the next three months as we continue to witness retail activity edging up sporadically as well as strong foreign presence trading across counters. The reduction of the Treasury bill rates and the upward trend we see in world markets nodding in agreement to the averting of the controversial fiscal cliff bill may nudge the Colombo bourse to head towards a positive direction.

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

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