Investor community yearns for peace in New Year

HNB Stockbrokers' weekly market review

Market Report: The market gained during most part of this week, however fell on Friday on profit taking.

Compared to last week the ASPI (All Share Price Index) picked up by 10.6 points or a marginal 0.39%, closing at 2722.4 points. Meanwhile the MPI (Milanka Price Index) rose by 15.1 points or 0.41% to close the week on Friday at 3711.8 points.

Though trading volumes remained low this week, the market picked up amid improved retail participation. Retailers were active this week in search of bargains before the start of the New Year, with this week being the last trading week of the year.

Trading was limited to 4 days this week, due to the Christmas day holiday falling on Monday. While a year comes to an end and another year begins, the hope of the investor community seemed similar to that of any other, in praying for peace for the coming year.

JKH managed to retain its position as the highest contributor towards turnover, contributing Rs.211.3 million this week. Trading volumes remained slightly above 1 million shares at 1.08 million shares, while the share price closed unchanged at Rs.195 per share. During the week however, prices managed to inch forward to trade at a high of Rs.196 per share.

Commercial Bank saw renewed foreign interest this week, amid Rs.114.2 million of foreign buying being witnessed on Friday. Approximately 671,900 of Commercial Bank shares traded on Friday, contributing Rs.127.6 million towards the day's turnover. During the week a total of 685,500 of the Bank's shares traded, resulting in a total contribution towards weekly turnover of Rs.130.2 million.

The counter also saw a slight appreciation in share price by 1.6% compared to last week to close at Rs.190 per share.

LIOC was yet another share, which witnessed renewed investor appetite this week. The power sector counter saw 1.9 million of its shares trade this week while the share price too showed a favourable movement picking up by 7.5% Week on Week.

A peak price of Rs.29 per share was reached for this week, while closing on Friday at Rs.28.50 per share. Contribution towards weekly turnover amounted to Rs.55 million for the week. Sustained interest was seen on HNB shares last week as well, with more focus however being seen on the lower priced non-voting counter.

The week saw 642,200 of HNB non-voting shares trade, compared to a far less 84,600 shares of HNB voting shares. Both the voting and non-voting counters showed modest increases in share price this week, with the voting counter share price moving up by 1.8% and the non-voting counter share price rising by a higher 2.2% compared to last week.

Turnover while standing low at the start of the week, picked up considerably on Friday, contributing Rs.431 million towards total weekly turnover. The total contribution for the week amounted to Rs.920.8 million, while the average daily turnover stood at Rs.230.2 million.

Foreign participation picked up this week to 27.8% of total activity compared to 14.5%, posted last week. Foreign purchases stood at Rs.152.4 million, while foreign sales totaled to a higher Rs.360.3 million this week, resulting in a net foreign out flow of Rs.207.9 million.

Dialog, Lanka IOC, SLT, Kegalle plantations and JKH were among the counters, which saw sizable volumes trade for the week.

Activity levels continued to remain sluggish during the week as most investors preferred to stay away from the market amid Christmas holidays. However both indices managed to record gains on thin volumes. All Share Price Index (ASPI) gained by 10.6 points during the week while more sensitive Milanka Price Index (MPI) appreciated by 15.1 points compared to last week's closing levels.

The Sri Lankan economy managed to maintain the strong economic growth during the 3rd quarter of 2006 despite uncertainties in the peace front.

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