Tuesday, January 15, 2013

Stock Market Review for the week ending 11th January 2013:

Bourse see-saws on subdued retail participation

Private deals on blue chips helps boost turnover

Trading for the week opened with both indices closing marginally lower. The ASPI and the S&P SL20 closed at 5,746 and 3,120 respectively with both indices closing lower by almost two points.

Price drops in high market cap counters such as HNB, Chevron, Bukit Darah and Commercial contributed to this effect negating the 1.3% gain witnessed in JKH. A modest turnover of Rs 557Mn was recorded with blue-chips, JKH and Commercial Bank witnessing foreign buying interest. Top contributors to turnover were JKH with Rs 218Mn, Commercial Bank with Rs 94Mn and Aitken Spence with Rs 44Mn. JKH increased by Rs 3.10 to close at Rs 223.00 while Commercial Bank lost Rs 0.30 to close at Rs 104.60. The share price of Aitken Spence closed flat at Rs 120.00. Continued retail interest in Panasian Power was witnessed with the counter closing flat at Rs 2.90. Net foreign inflow stood at Rs 199Mn.

On Tuesday, the indices closed higher with the ASPI gaining 6 points to close at 5,752 and the S&P SL20 gaining 4 points, to close at 3,124. Price gains in JKH, LOLC helped counter the indices to post gains. An improved turnover of Rs 1.2Bn was recorded on the back of a crossing in Asiri Central amounting to almost 50% of the day’s turnover. Continued interest in the banking sector and foreign participation in JKH was witnessed. The top contributors to turnover were Asiri Central with Rs 563Mn, Commercial Bank with Rs 254Mn and JKH with Rs 155Mn. The price of Asiri gained Rs 22.00 to close at Rs Rs 248.00 while Commercial Bank closed flat at Rs 105.00. JKH gained Rs 1.50 to close at Rs 224.50. Retail interest in Panasian Power was witnessed while Muller & Phipps witnessing renewed interest. A net foreign outflow of Rs 409Mn was witnessed.

Wednesday saw the indices closing marginally lower due to profit taking by investors. The ASPI lost 7 points to close at 5,745 while the S&P SL20 lost 3 points to close at 3,121. Treasury bill yields dropped across the board for the 5th straight week which in turn will help improve the condition of the market. Deals on Asiri Hospitals and Asiri Hospital Holdings helped boost the market turnover to Rs 497Mn while Dialog Axiata witnessed some selling pressure towards the end of trading. The top contributors to market turnover was Dialog Axiata with Rs 111Mn, Asiri Hospital Holdings with Rs 52.7Mn and CT Holdings with Rs 34Mn. The share price of Dialog Axiata closed flat at Rs 8.40 while Asiri Hospital Holdings increased by cents -/10 to close at Rs 11.50. CT Holdings increased by Rs 2.10 to close at Rs 130.10. A net foreign outflow of Rs 31Mn was recorded.

On Thursday, continued pofit taking in JKH and banking stocks resulted with the ASPI closing 13 points lower while the S&P SL20 witnessing a marginal increase of 0.66 points. An improved market turnover of Rs 1Bn was recorded, boosted by deals in blue-chips, JKH, HNB, Distilleries, Sampath and Nestle while retail participation remained subdued. HNB headed the top contributors list with Rs 256Mn followed by Distilleries with Rs 188Mn and JKH with Rs 160Mn. The share price of HNB gained Rs 1.60 to close at Rs 145.00 while Distilleries gained Rs 5.00 to close at Rs 175.00.

Meanwhile JKH lost cents -/10 to close at Rs 223.90. The net foreign inflow stood at Rs 140Mn.

On the last trading day of the week, both indices recorded gains with the ASPI closing higher by 14 points at 5,746 and the S&P SL20 closing 12 points higher at 3,134. Low activity was witnessed with a turnover of Rs 454Mn being recorded for the day. Interest in blue-chip counters continued with JKH leading the top contributors list contributing Rs 79Mn. Distilleries and Ceylon Tobacco were also amongst the top contributors, contributing Rs 56Mn and Rs 45Mn respectively. The share price of JKH lost cents -/60 to close at Rs 223.00 while Distelleries gained Rs 5.20 to close at Rs 180.20.

Ceylon Tobacco closed at Rs 852.00, gaining Rs 1.10. A net foreign outflow of Rs 15Mn was witnessed. With the Treasury bill rate continuing their downward trend steers the markets on to a positive direction. Throughout the week, retail participation continued to be subdued whilst private deals on blue chips helped boost turnover.

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

source - www.island.lk

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