Foreign purchases marginally up from last week
STOCK MARKET: The dull sentiment witnessed last week continued
during this weekâ€™s trading resulting from a low retail participation in
All Share Price Index (ASPI) and Milanka Price Index (MPI) dropped by
16 points and 41 points this week to close at 2572 points and 3584
Commercial Bank managed to become the highest contributor towards
market turnover this week eclipsing JKH, which managed to consistently
secure the top position over the last few weeks.
A significant 3 million Commercial Bank shares were seen trading on
Wednesday alone with the Counter
contributing Rs. 412.7 million towards the total market turnover for
the week. The share traded during the week within a range of Rs. 135.75
and Rs. 131. The Counter closed the week at Rs. 135, gaining 3% during
Controlling stake of 75% in Walker and Greig changed hands this week
at a price of Rs. 5.75 per share. The share price of Walker and Greig
gained 21% during the week to close at Rs. 7.25. The Counter contributed
Rs. 82.5 million towards weekly turnover while trading within a range of
Rs. 7.5 and Rs. 5.75.
SLT managed to secure the third place this week in market turnover
rankings contributing Rs. 80 million towards weekly turnover.
SLT traded within a thing range this week of Rs. 37.25 and 36.50. The
Counter lost 1% from itâ€™s last weekâ€™s closing price to close this weekâ€™s
trading at Rs. 36.50.
A significant stake in Dankotuwa Porcelain (DPL) traded on Friday
contributing Rs. 69 million towards the dayâ€™s market turnover.
During the week DPL shares generated a turnover of Rs. 71.8 million
while trading within a range of Rs. 11 and Rs. 8.50. The Counter closed
trading for the week at Rs. 10.25 up by 14% from last week.
Total market turnover for the week stood at Rs. 938 million and
average daily turnover for the week stood at Rs. 187 million, which
remained flat from last week.
Foreign investors continued to remain net buyers though foreign
inflows showed a 67% decline from last week to amount to Rs. 183.9
Foreign purchases for the week amounted to Rs. 662.7 million
marginally up from last week while foreign sales amounted to Rs. 478.8
million showing a significant increase of 439%.
Total foreign participation as a percentage of total market activity
stood at 61% up from 39% witnessed last week.
Walker and Greig, Dankotuwa Porcelain, Commercial Bank, SLT and
Dialog were among the highest traded stocks for the week.
As expected by us, market remained weak during this week with both
indices moving to negative territory. The activity levels also remained
relatively low with retailers continuing to adopt a wait and see
approach. Overall the market shed 16.7 points during the week compared
to previous weekâ€™s closing levels.
The annual average inflation measured by Colombo Consumer Price Index
(CCPI) declined to 17% in June compared to 17.4% recorded a month ago
while the Point to Pont inflation eased to 13% compared to 13.7% in May.
The June CCPI stood at 5344.3 points up by 167.9 points or 3.24%
compared to May CCPI. The increase in the index during June was mainly
due to the rise in food index.
Out of the total CCPI increase 3.20% was due to increases in food
items such as vegetables, bread, dried fish and coconut oil. The rise in
other categories such as fuel, clothing and miscellaneous was
In July 2007 we expect the annual average inflation to remain at
similar levels of around 17%, furthermore we expect a slowdown in
inflation during the remaining part of the year after it peaked in April
However according to our forecast inflation in December 2007 would
remain higher than what was recorded in the corresponding month of last
We expect the market to remain dull with retail activity likely to be
low during the coming week. However continuous foreign buying we
witnessed over the last 6-8 weeks is likely to continue and counters
such as JKH, SLT and Dialog are likely to be in the interest of the
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