Monday, May 16, 2011

Activity levels static

It was a week of mixed reactions at the Colombo Stock Exchange. The previous week’s rally continued with both indices adding points at the start with a dip midweek only to be recovered towards the end. ASPI was marginally up to close at 7319.94 while MPI added 32.48 points to close at 6769.36 up by 0.48 percent.

The turnover levels for the week tumbled by 37 percent and the average daily turnover ebbed to Rs 1.71 billion as against Rs 2.71 billion noted in the previous week.

However, volume statistics reflected an increase by 36.38 percent week on week. The daily average volume of turnover was 77.72 million shares as against 56.99 million shares recorded for the previous week. The aggregate weekly turnover was Rs 8.55 billion with a volume of 388.64 million shares.

Banking, Finance and Insurance sector led the turnover in value terms accounting for nearly 40 percent of the weekly turnover summing to Rs 3.33 billion on account of active interest in Nation Lanka, Central Finance and increased foreign participation in HNB stock. Manufacturing accounted for 12.89 percent of total turnover amounting to Rs 1.08 billion, followed by Beverage, Food and Tobacco at 7.86 percent with value contribution of Rs 660.65 million.

The counters that contributed to the Manufacturing sector are Bogala Graphite and Pelwatte while Renuka Agri supported the Beverage, Food and Tobacco segment. Banking and Finance also dominated the volumes with 42.45 percent share with 164.99 million shares. Manufacturing and Construction and Engineering sector followed with 10.99 percent and 10.9 percent respectively. Blue Diamonds both non voting and voting contributed to the manufacturing sector.

The weekly turnover was generated mainly by trading in Nation Lanka as 66.8 million shares changed hands resulting in Rs 1.214 billion or 42 percent of total turnover.

Additionally, Nation Lanka was the highest price gainer this week, as the share price increased by 54.3 percent to close at Rs 21.60 from last weeks price of Rs 14. Browns, Central Finance, JKH and HNB were the other counters that made it to the Top Turnover list of the week. On the price gainers, Eastern Merchants recorded 52.8 percent growth in price to close at Rs 1,589 from last weeks price of Rs 1,040 and Office Equipment which closed at Rs 120.40 after an increase of 50 percent on previous weeks price of Rs 80.25.

Top losers on price were Serendib Land which saw 60 percent of its price declining to close the week at Rs 956 from last weeks price of Rs 2400. Paragon lost 43.8 percent of share price closing at Rs 1201, and Alufab closed at Rs 113.4, a decline by 29 percent.

The week saw a decline in foreign participation as there was a net outflow of Rs 60.2 million as against net inflow of Rs 2.57 billion in the previous week. There were total foreign purchases of Rs 746.68 million as against sales of Rs 806.95 million.

Nation Lanka recorded the highest number of shares traded during the week representing over 17 percent of the week’s volume of shares traded. Renuka Agri which saw 24.79 million shares traded accounting for over 6 percent of the weekly volume of turnover, closed at Rs 6.80. Other popular counters were Amana, E-channeling and SMB Leasing.

Although the bourse witnessed dips in indices midweek, retail investors lifted the market to wrap up at a nominal gain. Investor interest was reflected in fresh buying on selected counters and also foreign inflow was indicated.

In the ensuing shortened week we expect a lull in activity levels. However the investors will look towards strengthening their investment portfolio by tapping fundamentally sound scrips with high growth potential.

source - www.dailynews.lk

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