Monday, May 30, 2011

Stock indices bearish

Both indices recorded an overall contraction of .27 percent of the ASPI and .06 percent of the MPI. The ASPI shed 20 points to close at 7459.58 while the MPI shed 4.45 points, closing at 6875.54.
The weekly turnover recorded Rs 15.39 billion with a daily average of Rs 3.07 billion, an increase of 12 percent from last week’s Rs 2.74 billion daily average turnover. The volume of turnover last week was 696.45 million shares averaging 139.29 million shares daily, whilst last week’s volume was 140.43 million shares per day. The volume of turnover contracted marginally week on week.

Banking, Finance and Insurance sector continued to represent the largest contribution to the weekly market turnover both in value and in volume as it accounted for 21.9 percent of overall turnover in value and 32.4 percent of turnover in volume, driven by interests in Nation Lanka, Central Finance, Commercial Bank and Janashakthi. The other major contributors to total market turnover in value were Land and Property sector representing 12.8 percent of the weekly turnover followed by the Diversified sector with 10 percent of total turnover. Second on the list of total turnover in volume was the Land and Property Sector with 8.9 percent whilst Diversified sector was third with 6.3 percent contribution.

JKH was the major contributor of the aggregate market turnover, accounting for Rs 1.14 billion or 7.4 percent of aggregate market turnover of the week. Nation Lanka denoted 5.4 percent of aggregate market turnover accounting for Rs 833 million.

Central Finance, Dunamis Capital and Touchwood were highlighted as other major counters in the top turnover list, reporting total turnover of Rs 813.1 million, Rs 605.8 million and Rs 597.9 million respectively.

CDIC recorded as the major price gainer for the week witnessing an increase of 88 percent increase in share price as against previous week’s price of Rs 215.00. The share closed at Rs 404.20. Dunamis Capital reported a gain of 80.4 percent in comparison with previous week’s price of Rs 13.80 closing at Rs 24.90.

Serendib Land, Colombo Land and CFT were other major price gainers of the week closing prices at Rs 1,700.00, Rs 35.70 and Rs 11.2 respectively.

Swarnamahal Finance was the top loser of the week with a decrease in price of 55 percent against last week price of Rs 100.00, to close at Rs 45.00. Eastern Merchant reported a decline of 32.2 percent in price to close at Rs 1525, compared with previous week price of Rs 2250.00. Bogala Graphite, Autodrome and Alufab were other major losers of the week, as the shares closed at Rs 65.30, Rs 910.10 and Rs 107.10 respectively.

Foreigners remained net sellers this week with Rs 105.21 million outflow as against last week’s outflow of Rs 291.79 million. Total Foreign buying this week was Rs 1.23 billion, recording a daily average of Rs 246.71 million as against last week’s daily average buying of Rs 365.98 million. Therefore total buying recorded a decline by 32 percent week on week. Additionally, Foreign sales experienced a sharp contraction of 42 percent with the total sales for the week at Rs 1.33 billion, averaging at Rs 267.7 million daily compared with last week’s total sales of Rs 1.38 billion averaging at Rs 463.25 million daily.

Colombo Land was placed first in the top volume list with 77.44 million shares changing hands during the week. The counter represented 11.12 percent of aggregate market volume. S M B Leasing (Non-Voting) traded 56.2 million shares contributing 8.12 percent to aggregate turnover in volume. S M B Leasing (Voting), Pan Asian Power, Nation Lanka recorded volumes at 53.3 million, 52.9 million and 33.2 million respectively.

Point of view

The indices reflected mixed investor sentiments at the bourse as it continued to be dominated by retail activities and the absence of major institutional investments.

With regard to corporate profits, 88 percent of the counters that have released their quarterly earnings upto now have recorded profits with the Banking, Finance and Insurance sector recording the largest contribution of the total attributable earnings.

We anticipate that the present momentum of activities will be maintained during the week ahead.

source - www.dailynews.lk

No comments: