JKH continues to dominate market
The market rema-ined dull throughout the week with the 2 indices
continuing their drift downwards. ASPI (All Share Price Index) and the
MPI (Milanka Price Index) started the week on a negative note by falling
17.7 & 29.4 points respectively on Monday prior to shedding a total of
26.9 & 57.7 points to close the week.
During the week ASPI dropped 1.1% to close at 2422.2 points on Friday
while MPI witnessed a fall of 1.71% to close at 3314.9 points at the end
of the week’s trading.
JKH continued to retain its dominance in the market by accounting for
37.6% or Rs. 145.9 million of the total market turnover. The counter saw
1.15 million of its shares trade for the week, becoming the third
highest volume trader. The stock noticed a 0.78% dip in its share price
before winding up at Rs. 126 per share.
Meanwhile it was announced on Friday that JKH was included in S & P
(Standard & Poor’s) frontier market index becoming the only stock to
represent Sri Lanka. However this failed to attract much investor
interest as counter closed trading flat on Friday.
Ceylinco Insurance managed to become the second highest contributor
towards the weekly turnover with a total contribution of Rs. 26 million,
comprising 6.7% of the total turnover.
The share fluctuated in a wide range during the week reaching a low
of Rs. 153.25 and a high of Rs. 180, before closing flat at Rs. 180 per
share Week on Week.
Telecom sector counter, Dialog saw 0.56 million of its shares trading
for the week while the share price saw a WoW drop of 1.11% to close the
week at Rs. 22.25 per share. The company contributed Rs.12.5 million
towards the weekly turnover.
Amid the healthy quarterly results HNB succeeded into the fourth
position providing Rs. 9.5 million to the market turnover with a total
trading of 102,600 shares. HNB witnessed its share peak at Rs. 94.25,
however closed the week with a price deterioration of 2.1% at Rs. 93 per
Market activity was restricted to thin volumes this week where the
market hit its lowest turnover in nearly two and half years’ on
Thursday, which amounted to Rs. 44.6 million.
Activity for the week showed a significant 68.3% decline compared to
last week, with a weekly turnover of Rs. 387.6 million and an average
daily turnover of Rs. 77.52 million.
Foreign purchases for the week amounted to Rs.186.7 million while the
sales totalled to Rs.82.5 million resulting in a net inflow of Rs. 104.2
million, down by a substantial 83.3% for the week. Foreign participation
during the week was 34.73% on total activity, which was a decline from
last weeks 49.46%.
Heavily traded counters during the week were Vallibel, Sierra Cable,
JKH Ceylon Glass & Seylan Bank (non voting).
Macro uncertainties dragged indices further in to the negative
territory on very thin volumes. However trading opportunities existed in
the market as volatility continued throughout the week. Week on Week All
Share Price Index (ASPI) lost 26.9 points while the Milanka Price Index
(MPI) shed 57.7 points.
We expect the market to remain dull, as investors are likely to
continue the ‘Wait and See’ approach adopted by them in recent times.
Thus activity levels would remain low but investors are advised to
keep an eye on the possible trading opportunities that could exist in
the market place.
Furthermore the corporate earnings released so far for the 1st half
of 2007 showed mixed results with most of the highly geared entities
getting hit in the back of high interest rate scenario. However
companies with strong balance sheets such as JKH, Commercial Bank and
HNB have shown positive results despite adversity.
Some of the blue chips such as SLT, DFCC, Sampath and Distilleries
are also due to publish their financial results for the quarter ended
We advice investors to keep a close tab on the earnings of these blue
chips and accumulate those recording healthy profits with a medium to
long-term investment horizon.
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report and the information and views contained cannot be reproduced or
quoted in part or whole in any form whatsoever without the written
permission from HNB Stockbrokers (Private) Limited.