Look for trading opportunities

Profit taking dragged indices towards negative territory this week on low volumes.

However trading opportunities continued to exist in the market place keeping retail investors interested. Overall the market shed 47.6 points during the week compared to last week's closing levels.

We expect a little change in the market sentiment in the coming week, thus the indices are likely to remain volatile presenting trading opportunities. We advise investors to exploit these trading opportunities but to be selective in stock picking in order to minimise the risk.

Improved performance in the trade account continues

The country's external trade posted a strong performance in July 2007 with trade deficit continuing to improve Year on Year (YoY). The trade deficit up to July 2007 declined by 15.6% compared to the same period last year amid higher export revenue generated during the first seven months of this year.

Apparel sector drive exports growth

Exports during July 2007 grew by 33.9% to US$ 690.5 million compared to US$ 515.5 million recorded during the corresponding period last year. The strong growth in exports during July was mainly driven by the textiles and garments, which grew by 38.5% to US$ 313.9 million compared to July 2006. Agriculture exports also increased by a healthy 26.3% YoY to US$ 135.5 million. Meanwhile imports recorded a 6.2% increase YoY to US$ 915.5 million during July 2007.

The growth in imports during July were mainly fuelled by the increases in imports of petroleum and investment goods by 15.5% and 17% respectively to stand at US$ 242.9 million and US$ 218.3 million.

The much faster growth in exports compared to imports resulted a drop in July 2007 trade deficit by 35.1% to US$ 225 million as against US$ 346.9 million during the comparable period last year.

Meanwhile cumulative exports (Jan to July 2007) in 2007 increased by 15.8% YoY to US$ 4,259 million while cumulative imports increased by only 4.3% to US$ 6,065.36 million resulting in a significant drop in trade deficit by 15.6% to US$ 1,806.3 million compared to US$ 2,140.2 million in the corresponding period last year.

Furthermore cumulative worker remittances increased by 19% YoY to US$ 1,534.4 million compared to the corresponding period last year.