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Sunday, September 26, 2010

CSE gains 100% year-to-date

The Colombo bourse has doubled in value since the beginning of the year posting a 100% gain year-to-date prompting a leading stock broking firm to call it "an attractive investment hub."

Acuity Stockbrokers said in a research report that the CSE has outperformed the market by giving a 100% year-to-date return backed by a positive economic outlook and lowered interest rates offered by banks further boosting investor interest.

"We expect the current momentum to continue with investor interest in key growth sectors and fundamentally strong stocks driving the market during the week ahead," the report said.

Acuity expected increased participation from foreigners and institutional investors saying that foreign investors, retailers, institutional investors and high net worth individuals had together driven the CSE to new heights.

The market opened last Monday without the price bands and continued its upward movement with the ASPI up 6.7% from the previous week while the Milanka gained 7.49% week-on-week topping the 7,000-point barrier.

Turnover averaged Rs.5.64 billion a day gaining 5.5% week-on-week with market capitalization up 6.86% to Rs.2,272 billion.

The banking and finance sector continued to dominate total turnover with a 43% share with the closing sector indices up by 10%, Acuity said.

Gainers in this sector included Seylan, NTB, DFCC, HNB, Pan Asia, LOLC and Vallibel Finance.

Next came the diversified sector with 18% of market turnover with JKH contributing Rs.3 billion to the week’s business volume. The counter closed at Rs.300, up nearly 4% from a week earlier.

Seylan Bank was another major contributor to turnover – Rs.1.73 billion with the share price up 21% to close at Rs.59.20.

Vallibel Finance was the most traded stock during the week with 61 million shares changing hands followed by Dialog with 37.2 million shares. Sierra Cables, SMB Leasing, Nawaloka and Seylan also showed heavy volume, Acuity said.

Foreign investors were net sellers with a net outflow for the week of Rs.202.8 million. Foreign purchase for the week amounted to Rs.2.45 billion and sales Rs.2.65 billion.

"Foreign trading levels increased last week with buying up 22% and selling 42%,’’ Acuity said.

Colombo Pharmacy was the top gainer for the week, up Rs.224% from a week earlier to close at Rs.2,915 a share against the previous week’s Rs.900.10.

source- www.sundayisland.lk