HNB Stockbrokers’ weekly market reviewMarket heavyweights drag
indices down
The Colombo bourse continued its setback from last week with indices
reaching a new low for the year on Tuesday. Considerable losses
witnessed on market heavyweight counters, particularly JKH dragged the
indices down substantially during the week.
The benchmark ASPI (All Share Price Index) ended lower loosing 42.3
points or 1.75% to stand at 2370.1 points, while the more sensitive MPI
(Milanka Price Index) fell by a much larger 68.7 points or 2.38% to
close down at 2813.2 points.
Hayleys contributed Rs. 192.2 million to the total market activity
this week after trading 1.4 million shares in volume, becoming the
largest contributor for the week. Interest on Hayleys saw several big
quantities switching hands during the week with the majority portion
coming on Friday.
Shares of the conglomerate edged higher by a notable 8.7% to close
the week at Rs. 146.75 per share having traded between a wide price
range of Rs. 130.00 and Rs. 148.00 per share over the week’s trading.
Meanwhile JKH share prices got depressed to close at Rs. 100, after
the Supreme Court ruling against the ownership of the land on which the
company carried out its bunkering operations.
The blue chip traded at a lowest price of Rs. 95.00 and a highest
price of Rs. 105.00 per share during the week with 1.1 million shares
changing hands. The stock stood as the second largest contributor for
the week with a turnover Rs. 109.2 million.
Distilleries another high cap stock, forged its way to become the 3rd
highest turnover generator for the week by contributing Rs. 70.3 million
towards the weekly turnover. The counter during the week declined by
2.2% to end at Rs. 88.00 per share with a volume of almost 0.79 million
shares.
Speculative trading was seen on AEC, which managed to become the
fourth largest contributor towards the week by adding Rs. 48.4 million
of turnover. The share price having been traded within a wide price
range of Rs. 1200.00 and Rs. 1674.75 per share gained a staggering 43.2%
during the week to close at Rs. 1647.00 per share.
Most actively traded during the week was Janashakthi, which made its
debut in Colombo Stock Exchange this week, following its initial public
offer at a price of Rs. 12 per share.
Janashakthi on its first day trading saw 1.6 million shares changing
hands on Monday, while in total trading 3.3 million shares for the week,
adding up Rs. 36.0 million towards the week’s turnover. However the
heavy selling pressure witnessed on the counter led to a 12.5% decline
in price to close Rs. 1.50 down at Rs. 10.50 per share at week’s close.
During the week market turnover amounted to only Rs. 733.6 million
showing a decline of 18.5% from previous week’s Rs. 899.8 million
Average daily turnover for the week stood at Rs. 146.7 million, down
34.8% compared to what was recorded last week.
Foreign participation for the week was slightly up at 12.9% of total
activity this week compared to 12.6% recorded last week. Foreign
purchases stood at Rs. 118.4 million, while foreign sales stood at Rs.
71.0 million resulting in a net inflow amounting to Rs. 47.4 million.
The highest traded stocks for the week volume wise were, Janashakthi
Insurance, Vallibel, Sierra Cabl and Hayleys.
Point of View
Low investor confidence likely to put further pressure on indices
Downward trend continued in the marketplace on heavy volatility as
investors continuing to view macro developments negatively. During the
week market fell by 42.3 points compared to last Friday’s closing
levels.
In the week ahead we expect the overall market momentum to be dull
with indices likely to come under pressure further in the back of low
investor confidence.
However as companies are expected to release earnings reports in the
coming few weeks we advise investors to slowly accumulate stocks that
are likely to come out with healthy corporate earnings.
Furthermore we highlight the importance of sticking to fundamentally
sound counters considering the weak market sentiment that prevails at
the moment.
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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