Market indices postive
Market indices closed on a positive note relative to last week's
holiday-shortened week, with the ASPI gaining 31.40 points (0.58%) and
the MPI gaining 14.27 points (0.29%). The ASPI closed at 5457.13 points
while the MPI closed at 4923.57.
Turnover value for the week was led by JKH which contributed 24.37%
to total market turnover amounting to LKR 457.94million. National
Development Bank and Commercial Bank of Ceylon Plc too made significant
contributions of 7.76% and 4.91%, respectively. Total weekly turnover
value amounted to Rs. 1.88 billion, averaging LKR 375.88mn, compared to
last week's daily average of Rs.163.21mn to represent a gain of over
100%. Market Capitalization too recorded a week-on-week gain of 0.58% to
end the week at Rs. 2029.61 billion. The Banking and Finance sector
contributed 30.99% (Rs.582.38 billion) to the week's total market
turnover value while the Diversified sector added LKR 535.66mn or
28.50%. The Food and Beverages sector - aided by Ceylon Tabacco Company
and Distilleries- accounted for 11.19% of total market turnover,
amounting to LKR 210.28mn.
The highest contributor to total market turnover volume this week was
the Banking and Finance sector which accounted for 61.21% (89.34mn
shares) as 11.32 million shares of Amana Takaful Plc changed hands. The
Manufacturing sector followed suit, contributing 9.62% to the market as
14.04million shares changed hands, while 7.71mn shares (5.28%) were
traded in the Land and property. Market Review
Serendib Land Plc led the price gainers’ list recording an increase
of 42.10% to close at LKR 2100.00 (relative to last week's LKR 1477.80).
Agstar Fertilizers Ltd followed behind, closing at LKR 10.60, up 13.98%
from last week's closing price of LKR 9.30; Kelsey Developments Plc
meanwhile gained 13.97% to close the week at LKR 15.50. Also amongst the
top price gainers’ was Ceylinco Insurance Plc and Sunshine Holdings Plc
which gained 13.83% and 11.52%, respectively over the week.
The week's top price losers’ was led by Gestetner which lost 27.71%
to close at LKR 215.00 from last week's close of LKR 297.40. Central
Finance Company declined 22.28% to close at LKR 153.10 while Hayleys-MGT
closed at LKR 10.00, down 13.79% from its previous close of LKR 11.60
Foreign participation on the bourse this week recorded a net inflow
of Rs. 142.83mn, averaging LKR 28.57mn relative to last week's daily
average net buying position of LKR 9.11mn. Daily average foreign
purchases amounted to LKR 150.05mn relative to last week's average of
LKR 27.75mn, while daily average foreign sales amounted to LKR 121.49mn.
In terms of volume, Overseas’ Realty and Blue Diamond (voting &
non-voting) led foreign purchases, while Dialog and Swarnamahal Finance
led foreign sales.
In terms of value however, Ceylon Tobacco and Commercial Bank led the
foreign purchase transactions for the week.
Markets commenced the week on a lackluster note with average turnover
levels at LKR 0.3bn by mid-week. The SEC's removal of the 10.0% price
band imposed to curb stock price volatility revived markets on Thursday
however, with markets rallying 111 points amid invigorated retail
investor confidence.
Profit taking on Friday nevertheless, pushed markets down 61 points
although turnover levels for the day (0.6bn) was the highest for the
week.
We expect market activity in the week ahead to show moderate
improvement given the end of the recent spate of holidays. Markets are
also likely to respond positively to the upgrades in the trading system
expected next week.
The LKR meanwhile depreciated 1.4% against the USD amid significant
importer dollar demand and as the currency market braces itself for the
possibility of the Central Bank stopping its supply of dollars to meet
oil import bills. |
