Market sailing high on big deals

Stock market performance during the week was encouraging as the broader ASPI (All Share Price Index) crossed the all important 3,000 point mark once again on Thursday. High volume transactions on selected blue chip counters drove activity levels higher during the week.

The ASPI (All Share Price Index) rose by 121.4 points or 4.2% to close the week at 3000.3 points this week while the MPI (Milanka Price Index) closed the week at 3416.0 points up by a significant 133.0 points or 4.1% compared to last week's closing levels.

The index heavyweight JKH saw foreign interest this week, with a notable 17.6 million shares traded during the week. The counter became the highest contributor towards weekly turnover contributing Rs 2.7 billion, supported by a chain of crossings throughout the week.

Bulk of JKH turnover came on Wednesday which accounted for 44.4% of total JKH turnover. Week on week a 7.8% improvement in the share price was witnessed with the counter closing on Friday at Rs 152.00 per share. The counter traded within the range of Rs 141.00 and Rs 153.00 per share for the week.

The banking counter DFCC, on Monday saw several large chunks comprising 12.2 million shares (9.2% stake of the company) changing hands at a discount to the current trading price at Rs 135.00 per share. Week-on-week the DFCC share appreciated by 2.8%, closing on Friday at Rs 145.00 per share, with 12.3 million shares traded for the week. Counter contributed Rs 1.7 billion towards weekly turnover becoming the week's second highest contributor.

Apart from JKH and DFCC, HNB also witnessed a large chunk of shares exchanging hands on Thursday, amounting to a 4.1% stake of the company. The trades consisted of 7.7 million shares transferred at a price of Rs 162.00 per share.

The counter was the third largest contributed stock for the week with Rs 1.3 billion contribution, while it traded 7.8 million shares for the week. The non-voting share also witnessed interest this week as the share price appreciated, increasing by 8.1% WoW to close at Rs 93.00 per share.

Turnover for the week was significantly higher than last week standing at a stunning Rs 6.9 billion, with last week's turnover standing at Rs 1.4 billion. Meanwhile average daily turnover during the holiday shortened 4 day week stood at a noteworthy Rs 1.7 billion. Foreign investors remained net sellers this week, totalling Rs 1.5 billion for the week. Both Foreign purchases and foreign sales were significantly higher this week due to trades in the above mentioned stocks, resulting in foreign participation standing at a high of 52.9% of total activity compared to last week.

Foreign purchases was at Rs 2.9 billion while foreign sales totalled to Rs 4.4 billion.

The highest traded stock for the week volume wise was, JKH, DFCC, Mullers, HNB and Sierra Cable.

All Impediments withered: Market

expected for an upturn

The week ended December 04 saw the ASPI moving from 2879.0 to 3000.3 amounting to 121.1 points and the MPI moving from 3416.0 to 3283.0 amounting to 133.0 points.

After two straight weeks of negativity, in terms of indices being down and bargain purchasing amounting to mediocre turnover, the current week witnessed the negative backdrop changing. Few large crossings were witnessed on some of the large corporates.

The large crossings, which were a mix of foreign and local activity, invariably induced local retail buying.

It is also noted that, all impediments which were considered to be pulling back the market activity, have been cleared, viz: the presidential elections have been announced and the common candidate has been proclaimed, also out of the speculated, most of Raj Rajaratnam's stakes have been sold. Thus, all discounting factors have withered.

It was mentioned the previous week that certain counters have the potential to move up, and it's opportune to capitalize over them.

Thus, we expect the buying trend to continue. Also it is expected a certain portion of the return cheques on the heavily oversubscribed "Renuka Agri Foods" IPO should flow back to the market.

(The information contained herein has been compiled from sources that Acuity Stockbrokers (Private) Limited (ASB) believes to be true and reliable but we do not hold ourselves responsible for its completeness or accuracy. No matter published herein create any liability of any kind on ASB.)