Monday, May 27, 2013

Stock Market Review for the Week Ended 23rd May 2013:

ASPI poised to cross 6,500 mark
The Colombo bouse gained 3.2 percent week-on-week to close at 6,488.85 while the S&P SL20 closed the short week 3.8 percent higher at 3,666.04. Net foreign inflow amounted to Rs. 1,904.5 million during the week, up 52.1 percent from the previous week.

The bullish sentiment continued to prevail this week and the market continued to display a particular buoyant atmosphere. On Monday we witnessed the main index ASI hovering around the 6,500 point mark where it eventually closed at 6,467 points for the day. The more liquid S & P SL 20 index close at 3,649 points since the market slowed down slightly towards the end of the day. Interest was showcased in index-heavy counters while foreigners showed interest in Commercial Bank where its foreign stake increased by 1,136,859 shares as the share price closed at LKR 122.10 gaining 2.61%.

JKH continued to rally also as the share price closed at LKR 297.10 gaining 4.20%. Market turnover for the day was recorded at LKR 1.28 Bn whereas the Bank, Finance and Insurance sector contributed mostly to the market turnover witnessing an increase in sector index by 0.13%. Overall market capitalization rose by LKR 33 Bn as foreign investors continued their streak as net buyers for the day recording a net foreign inflow of LKR 288.4 Mn extending the total foreign inflows for this year to LKR 11.47 Bn.

Colombo Bourse closed on opposing reactions on Tuesday as most of the blue chips held ground amidst profit taking in several speculative and mid cap stocks. Reversing Monday’s gains ASI lost a 4 day winning streak and closed 25.03 points (-0.4%) lower at 6,441.64. S&P SL 20 index closed at 3,660.94 with a gain of 11.59 points (0.3%). Turnover jumped to LKR 2.2 Bn for the day with trading in Commercial Bank, JKH and Distilleries as they contributed 45 % of the total turnover.

Commercial Bank closed at Rs.125.00, while JKH close at Rs.297.00 as these counters reached fresh 52 week highs. Foreigner investors were net buyers for the ninth consecutive day with net foreign inflow Rs.1.1bn. Net inflows were prominent in counters such as Commercial Bank LKR.677 Mn, Distilleries LKR.139 Mn and JKH at LKR100 Mn as the total net foreign inflow for the year now reached LKR12.0 Bn.

Markets bounced back on Wednesday as retail interest was shown on mid-cap counters, prompted by a fall in interest rates while foreigners focused their attention on banking sector counters. The main All Share Index closed at 6,461.62, up 19.98 points (0.31%) and S&P SL 20 Index closed at 3,663.98, up 3.04 points (0.08%) for day as heavy retail participation was seen in property sector counters such as Ceylinco Seylan Development increased by 7%, , Colombo Land & Development increased by 3% as Overseas Reality increased by 1%. Market turnover for the day was recorded at LKR 767.7 Mn with Commercial Bank LKR Cargills Ceylon and Sampath Bank topped the turnover list today. Prominent price hikes were recorded in counters such as CTC increasing by LKR 10, Chevron Lubricants hiking up by LKR 12.80 and Nestle’s price increasing by a staggering LKR 40.

 Foreign participants ended as net buyers with a net inflow of LKR 308 Mn for the day.

Due to the impending Vesak Holiday season, a half day trading was declared for Thursday.

Nevertheless, the Bourse managed to hold on to its optimism hovering just underneath the ASI 6,500 milestone. The All Share Price Index close at 6,488,85 up by 27 points from Wednesday while the more liquid S & P SL 20 index closed at 3,669.31 up marginally by 2.06 points. Given the short time span for the day, the turnover was recorded at fairly decent LKR 556 Mn for the day as the motor sector was declared as the highest contributor for the turnover with LKR 177 Mn, followed by Land and Property and Manufacturing sectors. Top gainers for the day were Lake House Printers and Publications with a rise in price by 12.45%, J L Morrison Sons and Jones by 11.5% and Softlogic Finance PLC by 10.96%. Meanwhile, foreigners continued their buying sentiment pushing up the net foreign inflows at the end of yet another by LKR 218 Mn.

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