HNB Stockbrokers’ weekly market review
Market holds ground amid gains in few high cap stocks
The market had a shaky start responding to the bomb attacks in the
country during the weekend, but thereafter picked up gradually with
interest generated on selective stocks, to close the week on a slightly
positive note.
Hence at week’s close the ASPI (All Share Price Index) gained 10.2
points or 0.42% to 2463.8 points while to the contrary, the more liquid
MPI (Milanka Price Index) dropped by 29.4 points or 0.94% to end at
3123.4 points.
Contradicting signals given by the two indices is due to substantial
17% & 14% price gains of the high-capitalised stocks Carsons & Bukit
Darah, which are not included in the Milanka Price Index.
The high cap counter, Distilleries lead market activity with a total
turnover of Rs.85 million, While approximately 0.9 million shares traded
closing the week at Rs.96 per share rising by Rs.1 from last week’s
close of Rs.95 per share.
The week also saw sizable quantities of Seylan (Non Voting) shares
being traded, particularly towards the latter part of the week, due to
investor expectation of a dividend payout by the Bank.
Approximately 6 million of Seylan (Non Voting) shares traded, adding
up a total value of Rs.54.1 million to the weekly turnover. The counter
on Friday closed at Rs.9 per share witnessing a week on week price
appreciation of 12.5%.
Investor interest on Kshatriya Holding drove up market activity
leveled by Rs.50.9 million to stand as the 3rd largest contributed stock
for the week. The stock having fluctuated within a price range of
Rs.10.25 and Rs.9 closed flat at Rs.9.25.
The major trade on the counter came on Wednesday, which accounted for
98% of the week’s turnover generated by the counter.
SLT consistently attracted investor interest during this week, which
generated a total contribution of Rs.47.1 million to the weekly
turnover.
During the week SLT traded between a high of Rs.31 per share and a
low of Rs.30 per share before closing at Rs.31 per share, witnessing a
price gain of 0.81% over the week.
The counter saw over 1.5 million shares been traded during the week.
The total turnover for the week stood at Rs.712 million, which is a drop
of 33.1% WoW in the absence of any positive news to drive up activity
levels. Meanwhile the average daily turnover stood at Rs.178 million,
down 16.4% compared to last week.
The week saw foreign investors being net buyers standing at Rs.206.4
million, Resulting from higher foreign purchases, which stood at Rs.277
million, and lower foreign sales, which stood at Rs. 70.6 million.
Meanwhile foreign participation for the week stood at 24.4% of total
activity.
The heavily traded stocks for the week were Seylan (Non Voting),
Kshatriya Holding, Lanka Cement and SLT. Point of view
Sentiment to remain dull
Weak sentiment continued in the marketplace with activity levels
remaining low around Rs.178 million on a daily average basis.
Overall the All Share Price Index (ASPI) gained by 10.2 points while
Milanka Price Index (MPI) lost 29.4 points during the week compared to
last weeks closing levels.
In the week ahead we expect the market to remain dull on low activity
levels with indices fluctuating within a narrow range.
However most of the listed companies are yet to announce their
earnings for the last quarter of 2007, thus we expect a slight
improvement in investor activity in the market when these earnings
reports are published in the coming weeks.
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.
All opinions views findings and conclusions included in this report
constitute our judgment of this date and are subject to change without
notice.
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