Market volatile amid profit taking

THE market remained volatile this week amid profit taking. However both indices managed to improve its performance from last week's closing levels.

The ASPI (All Share Price Index) closed the week up by 62 points or 2.55% to close the week at 2496.4 points. Meanwhile MPI (Milanka Price Index) closed at 3280.6 points rising by 71.7 points or 2.23% above last week's closing levels.

On the spotlight this week was diversified conglomerate Hemas, which saw 8 million of its shares being sold at a price of Rs. 130 per share on Monday. Among the buyers were the EPF, NSB, the Sri Lanka Insurance Life Fund and two Singapore based and two Hong Kong based companies.

The counter became the highest contributor towards the weekly turnover, contributing Rs.1.19 billion with Rs.1.05 billion coming on Monday alone. The week saw 9.2 million shares of Hemas trading at a high of Rs.140 and a low of Rs.130 to close the week at Rs.130.25 per share.

Telecom sector stocks Dialog and SLT managed to retain investor interest with both shares seeing significant quantities of trade. Dialog saw 29.2 million of its shares trade for the week becoming the highest traded stock for the week.

The counter saw its share price rise to a high of Rs.22.50 per share, however falling and closing the week at Rs.20.50 per share. The counter contributed Rs.622.6 million towards weekly turnover.

Meanwhile SLT saw 16.2 million of its shares trade for the week, peaking at a high of Rs.27 per share. The counter closed the week at Rs.25.50 per share, showing a Week on Week appreciation in share price by 4.1%. SLT contributed Rs.416.5 million towards weekly turnover.

Banking sector counters retained their bullish sentiments with DFCC, Commercial bank, NDB and HNB seeing its share prices appreciate this week.

DFCC saw its share price appreciate by 10.5% WoW to close the week at Rs.287.25 per share. The counter, saw 0.14 million of its shares trading for the week. Meanwhile Commercial saw its share price rising by 7.8% WoW to close the week at Rs.165 per share, with 1.4 million shares trading for the week.

NDB saw 1.09 million of its shares trade this week, with the share price of the counter rising by 6.8% WoW. NDB shares closed the week at Rs.237 per share.

Approximately 0.6 million of HNB shares traded for the week with the counter closing at Rs.120 per share. The share price saw an increase of 4.3% WoW.

Healthcare sector counters saw renewed interest with the share prices of its counters appreciating heavily. Durdands saw its share price rise by 37.1% WoW to close the week at Rs.58.25 per share.

The counter traded at a high of Rs.62 per share and a low of Rs.43 per share for the week with 0.19 million shares trading for the week. Asiri saw its share price appreciate by 32.3% to close the week at Rs.63.50 per share. The counter saw its shares price peak at Rs.65 per share for the week.

LMF was yet another stock, which saw considerable quantities being traded this week with 8.5 million of its shares trading for the week. The counter saw its share price rise by 26% WoW to close the week at Rs.32.75 per share.

The total turnover for the week saw a sizable 77.8% increase to close the week at Rs.5.85 billion. Meanwhile the average daily turnover stood at Rs.1.17 billion.

Foreign purchases was up by 81.9% to stand at Rs.1.62 billion (partly due to Hemas share trade which saw foreign buying), while foreign sales saw a 125.1% increase to stand at Rs.1.04 billion for the week.

Foreign investors remained net buyers for the week amounting to Rs.580.4 million. Foreign participation for the week improved marginally to 22.8% of total activity, compared to last week's participation level of 20.6%.

The highest traded stocks in the market for the week were Dialog, SLT, Hemas, LMF and Tokyo Cement.

Profit taking dampens market momentum

As expected by us the bullish sentiments seen during the last couple of weeks dampened amid profittaking this week. Profit taking was heightened by the fact that investors were looking towards freeing funds with several new issues coming into the market.

On the political front two key political parties the Sri Lanka Muslim Congress (SLMC) and the Ceylon Workers Congress (CWC) announced their decision to back the United National Party's (UNP) presidential candidate this week.

Volatility to continue

While profittaking could be expected to continue next week, the market is likely to pick up in line with the positive sentiments of the investors.

With profittaking creating downward pressure on prices, bargain-hunting opportunities could arise. Thus we advise the investors to be watchful to make use of these opportunities created in the market which is expected to remain volatile.

"This information has been compiled from sources that we believe to be reliable but we do not hold ourselves responsible for its completeness or accuracy. No matter published herein create any liability of any kind of HNB Stockbrokers (Private) Limited or its associates.