Friday, October 22, 2010

Heavy Trading on Blue Chips

Stock Market Report by Capital Trust Securities (Pvt) Ltd.

During the holiday shortened week the All Share Price Index (ASPI) gained 59.13 points to close at 6685.99 points, while the Milanka Price Index (MPI) also gained 121.54 points to 7270.80 points.  The daily average turnover was SLRs.3.4bn compared to SLRs.3.8bn last week and the week ended with foreign buying amounting to SLRs.2.1bn whilst foreign selling was SLRs.5.3bn.

On Monday indices moved in opposite directions with ASPI losing 4.27 points and MPI gaining 124.45 points. Total turnover was limited to SLRs.1.9bn to which approximately SLRs.450mn was contributed by Distilleries Company (DIST) which closed up SLRs.10.00 at SLRs.182.90 with 2.5mn shares traded being the most heavily traded stock. Sampath Bank, Colombo Dockyard, JKH and Commercial Bank were also amongst the top five counters in terms of turnover. Ceylon Leather Products warrants actively traded during the day and were amongst the top gainers.

Market surged on Tuesday with ASPI and MPI gaining 81.02 points and 124.45 points respectively. Turnover passed the SLRs.3bn mark with over a billion being report from the banking sector. Commercial Bank, NDB, and Sampath Bank were amongst the top five counters in terms of turnover while day’s largest turnover of SLRs.582mn was reported on JKH which closed up at SLRs.310.00. Day’s second largest turnover of SLRs.504mn was reported on Asiri Surgical where 53mn shares traded between SLRs.8.60 and 9.80 of which 52.8mn shares (10% of issued capital) was sold by Sri Lanka Insurance Corporation at SLRs.9.50 that was bought by Asiri Hospitals increasing their stake to 40%.

On Wednesday total turnover reached SLRs.5.2bn due to local high net worth buying on JKH, HNB and DFCC. Largest share of turnover was generated on JKH which closed down SLRs.6.30 at 303.70 with 7.95mn shares traded of which majority traded at SLRs.305.00. Approximately 1.6mn shares of HNB traded during the day of which majority traded through crossings at SLRs.400.00 and 405.00 while DFCC closed at SLRs.446.80 with majority traded at SLRs.440.00. Active trading on DIST was witnessed with 3.3mn shares changing hands between SLRS.181.30 and 184.00 with majority traded at SLRs.181.50 by way of crossings. Interest on rest of the banking sector counters continued with many making significant contributions to turnover however no major price movements were reported. Market closed on a negative note with ASPI and MPI reporting losses of 39.39 points and 78.10 points respectively.

On Thursday JKH reported day’s single largest turnover for the fourth consecutive day with 4.1mn shares traded. 2.5mn shares of DIST traded between SLRs.180.00 and 183.00 posting SLRs.450.00mn in turnover followed by Sampath Bank, Commercial Bank and Vallibel Power which also made significant contributions to day’s total turnover of SLRs.3.3bn. Market closed on appositive note with ASPI and MPI gaining 21.77 points and 42.34 points.

During the week heavy buying on many of the blue chip counters improved investor confidence. Further buying on blue chip counters is expected in the following week with the market surging on the back of strong corporate earnings being reported.

source - www.dailymirror.lk

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