ASPI breaks previous record high

A strong upbeat in the market was witnessed this week, amidst ASPI (All Share Price Index) and activity levels rising to record high levels during the week. ASPI closed on Friday at 3188.8 points above its all time record high of 3139.7 points recorded just two months back.

Market yet again continued to witness large volume trades during the week; with Wednesday’s turnover supported by large JKH crossings, saw the day’s turnover exceed Rs.5.0 billion standing as the fourth highest daily turnover since January 2004.

The ASPI closed the week at 3188.8 points on Friday up by a considerable 132.2 points or 4.3 percent compared to last week, while the MPI (Milanka Price Index) showed a higher movement rising by 151.9 points or 4.4 percent to 3630.5 points.

Foreign interest in JKH, led to the counter becoming the highest contributor towards weekly turnover this week. 36.9 million of JKH shares traded for the week, contributing a record breaking Rs.5.9 billion towards weekly turnover.

The major portion of 29.1 million of JKH shares traded on Wednesday, witnessing both foreign purchases and sales. Counter was the highest turnover generator during the first four trading days of the week assisted by a number of large block trades. During the week the counter traded at a low of Rs.154.00 per share and a high of Rs.160.75 per share to close the week 3.6 percent up at Rs.160.50 per share.

A 2.4 million quantity of banking sector counter, DFCC traded within a price band of Rs.150.00 and Rs.160.00 per share during the week, with most volume traded on Friday. Contribution from DFCC amounted to Rs.376.2 million whilst the share closed 5.3 percent higher at Rs.160.00 per share.

Meanwhile another banking counter Commercial Bank managed to contribute Rs.373.2 million, towards the week’s turnover with a total of 2.1 million shares trading. During the week, the counter was seen trading between a band of Rs.174.00 and Rs.185.00 per share to close at Rs.184.75 per share on Friday.

Turnover for the week showed a substantial 187.4 percent growth compared to last week to stand at Rs.9.1 billion. The average daily turnover for the week amounted to Rs.1.8 billion.

As highlighted above the turnover this week mainly consisted of JKH which came through on Wednesday. Excluding the contributions from the strategic trades on Wednesday, which total to a staggering Rs.4.5 billion, this week’s turnover stands at Rs.4.6 billion.

Both foreign purchases and sales were boosted on Wednesday amid foreign participation being witnessed on JKH. Foreign purchases for the week amounted to a staggering Rs.5.9 billion, of which Rs.4.8 billion came on Wednesday alone.

Meanwhile foreign sales amounted to Rs.3.6 billion with the major part of Rs.2.4 billion coming on the same. The resultant net effect was a foreign inflow for the week amounting to a noteworthy Rs.2.3 billion. Foreign participation this week stood at a significant 52.0 percent of total activity.

Apart from the major high volume trades on JKH the other highest volume traded stocks during the week were Vallibel, Mullers, Seylan Merchant (Non Voting), Asiri and Dialog.

Mixed Momentum to Remain

The week ended 18/12/2009 saw the ASPI moving from 3056.6 points to 3188.8 points amounting to 132.2 points while the MPI moving from 3478.6 to 3630.5 points amounting to 151.9 points.

As predicted in our previous weekly reviews the market has totally discounted the possible negative factors that could affect the market.

Thus, it is evident that the investors have realized the potential and is capitalizing over it. The week’s activity was mixed, with major crossings of large corporates, heightened “high net worth” individual and retailer activity.

However, on a different note the benchmark interest rates as expected were up during the week. The most predominant factors being the year end seasonal pressure to borrow and the estimated staggering elections cost to be borrowed.

Similarly to the week ended 18/12/2009, we expect the bourse to continue ahead with a mixed momentum next week.

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.

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