Market retains upward momentum

THE benchmark ASPI (All Share Price Index) ended slightly higher this week gaining 20.1 points or 0.8% to stand at 2546.7 points, while the more sensitive MPI (Milanka Price Index) ended 8.5 points higher at 3461.4 points, up by 0.24%.

Meanwhile the activity levels too improved considerably compared to last week in the back of enhanced retail and foreign activity.

Out of the week’s total turnover, most part was contributed by the JKH reflecting 10.8% or Rs.172.4 million of total equity turnover for the week. The week saw 1.3 million shares of JKH changing hands with counter fluctuating in a price range of Rs.137 and Rs.130. However the stock witnessed a 3.63% dip in its share price compared to last week’s closing levels.

Foreign interest aided the banking counter HNB (Voting) managed to get into the limelight with total sales of Rs.123.7 million, trading almost 1.2 million shares. During the week’s trading HNB touched a highest price of Rs.105 and a lowest of Rs.100 before closing at Rs.102.50, up by 0.50 cents.

Similarly the HNB Non Voting shares were also seen actively trading throughout the week witnessing a 9.64% price appreciation.

During the week HNB Non voting counter traded at a highest and lowest prices of Rs.48.50 and Rs.40 respectively before closing at Rs.45.50 on Friday. Non-voting counter was also among the leading contributors towards the weekly market turnover contributing Rs.71.1 million.

The 3rd largest contributor towards market activity was the Walk & Greig with a total contribution of Rs.109.66 million. At Friday’s close the counter was up by Rs.7.50 to Rs.21.25 witnessing a significant 54.54% price gain compared to Rs.13.75 at week’s beginning.

Bukit Darah forged its way to the 4th place by contributing Rs.71.69 million to the weekly turnover. The Counter during the week appreciated by a mere 0.54% to end the week at Rs.930 per share with almost 76,800 shares being traded.

Active trading by retail investors was witnessed during the week with market achieving a total of Rs.1.59 billion indicating a 102% increase from last week (last week trading activity was limited to 4 days only). Meanwhile the daily average turnover stood at Rs.317.84 million with an increase of 61.6%% from last week’s Rs.196.73 million.

Foreign investors for the week remained net buyers with a total net inflow of Rs.338.60 million. This was up 55.8% on a WoW basis, due to the 171.3% and 78.1% increases in foreign purchases & foreign sales respectively.

Foreign purchases for the week amounted to Rs479.90 million while foreign sales stood at Rs.141.30 million. Out of the total activity foreign participation was at 19.54% compared to 6.22% of last week.

Highly traded stocks for the week were Ceylon Glass, Vanik, Walk and Greig & Blue Diamond.

Market gained on healthy activity levels amid improved local and foreign participation compared to last week. During the week investors were seen collecting undervalued stocks such as JKH, Distilleries etc. while retailers continuing to look for trading opportunities on low value stocks.

Overall the All Share Price Index (ASPI) gained by 20.1 points while the liquid Milanka Price Index (MPI) notched up 8.5 points compared to last week’s closing levels.

We do not expect a major shift in the market sentiment during the coming week thus the active market momentum would likely to continue.

Furthermore we feel that the market turnover levels would remain healthy with retail investors focusing on day trading opportunities as the market remains volatile.

Therefore we advise investors to look for growth sector counters while focusing on trading opportunities in the marketplace.

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