Monday, May 6, 2013

Bourse reaches 16 month high

Stock Market Review for the week ending 03rd May 2013:

The Colombo bourse closed the week on a 16 month high with the All Share Price Index crossing the 6,000 mark on Friday, closing at 6,013.18 up 0.86 percent from the previus week. Year-to-date the ASPI was up 6.56 percent. Retail and foreign investors were active during the week with net foreing inflows amounting to Rs. 348.11 million.

The S&P SL20 closed the week at 3,405.99, up 1.39 percent from a week earlier, growing 10.39 percent year-to-date.

Shares closed at their highest level in seven months on Monday as retail investors bought decisive shares responding to the hope that interest rates will fall by June. Institutional participation was apparent but was relatively overshadowed by its retail investors were opting for profit gain while attempting to secure further benefit from the prevailing positive sentiment. During the day, ASI gained 5.45 points (0.09%) to close at 5,967.62 and the S&P SL20 Index gained 3.78 points (0.11%) to close at 3,363.14. Top contributors to turnover were Colombo Dockyard with Rs.146.1Mn, Colombo Land & Development with Rs.93.1Mn and Commercial Bank with Rs. 60.6Mn. Most active counters for the day were Touchwood Investments, Colombo Land & Development and Central Investments & Finance. Turnover for Monday was recorded at Rs. 846.6Mn while foreign participation for the day was 12.0% of total market turnover with net foreign buying amounting to Rs. 114.6Mn.

The market ended a four-session gaining streak on Tuesday as retail investors retained profits while the foreign investors continued their focus on blue chip counters. Treasury yields declined during today’s auction while the ASI fell 14.43 points (0.24%) to close at 5,953.19 and the S&P SL20 index gained marginally by 2.65 points (0.08%) to close at 3,365.79. Top contributors to turnover were Colombo Land & Development with Rs. 260.9Mn, Commercial bank with Rs. 117.9Mn and National Development Bank with Rs. 72.3Mn. Most active counters for the day were Colombo Land & Development, Touchwood Investments and Lanka IOC. Turnover for Tuesday was recorded at Rs. 876.3Mn and notable gainers for the day were Abans Financial Services up by 20.8% to close at Rs. 34.80, Lanka IOC up by 12.1% to close at Rs. 25.00 and Blue Diamonds non-voting up by 6.3% to close at Rs. 1.70. Foreign investors were net buyers today with an amount of Rs 85.8 Mn shares increasing the net foreign inflow of this year to Rs 8.78 Bn.

After the May Day holiday which fell on Wednesday, the Colombo Bourse closed at a 16 month high on Thursday with an improved ASI level of 5,972.37 points while the S & P index gained 15.59 points to close at 3,381.38. Several counters such as John Keells Holdings (LKR 250.10), Dialog Axiata (LKR 9.50), Seylan Bank (LKR 70.00), Textured Jersey (LKR 11.90) and Lanka IOC (LKR 28.00) reached their 52 week high prices on Thursday. Foreign investors were net buyers for the fourth consecutive day with net inflow of LKR 99Mn while the market turnover was recorded at LKR 635mn. Top contributors to the turnover were Touchwood Investments (LKR 123mn), John Keells Holdings (LKR 99mn) and Lanka IOC (LKR 38mn).

The market displayed a buoyant sentiment which persisted throughout the day as the main ASI index soared by 40.81 points crossing the 6000 point limit to close at 6,013.18 (+0.68%) while the S & P index picked up 24.61 points to close at 3,405.99 (0.72%). Top gainers for the day were SMB Leasing PLC up by 25% to climb to Rs 0.50, Samson International PLC up by 14% to close at Rs97.90 and Bimputh Finance up by 13.75% to close at Rs 18.20. The market turner over for the last trading day of the week was recorded at Rs 881 Mn as several crossings by Commercial Bank and John Keells aided the increase in turnover from Thursday. Foreigners were net buyers today for the fifth consecutive day with a net inflow of Rs 48 Mn and the Central Bank revealed yesterday that foreign inflow continue to improve on par with the healthy performance last year.

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