In December:

Stocks yield high returns

Stocks rose further since ASPI (All Share Price Index) reaching its peak high last week, sending the benchmark index above its highest close ever, on Thursday to close at 3292.8 points.

The week started with the indices sustaining the positive trend from the previous week, however, witnessing a minor setback on Wednesday. Compared to the Week on Week the ASPI improved by 103.9 points or 3.3 percent to 3292.8 points compared to the previous week, while the MPI (Milanka Price Index) gained by 146.8 points or 4.0 percent, to close above last week’s closing level at 3777.2 points.

Similar to what was witnessed the previous week, JKH drove the market last week as well, becoming the highest traded stock and the highest contributor towards weekly turnover. Around 5.8 million JKH shares traded during the week.

Contribution towards weekly turnover amounted to Rs. 982.7 million. The share closed at Rs. 170.25 per share gaining 6.1 percent Week on Week (WoW). During the week the counter traded between a wide range of Rs.160.00 and Rs.180.00 per share. JKH was the top contributor on three of the four trading days during the week.

Meanwhile other blue chip counters to lead in terms of contribution to weekly activity were HNB, AHOT Properties. NDB with Rs. 705.3 million, Rs.439.3 million and Rs.422.5 million contributions. Renewed interest on Aitken Spence saw its share price gain an impressive 19.9 percent to close the week at Rs.1198.75 per share whilst managing a contribution of Rs.170.2 million towards market turnover.

Total turnover stood at Rs.4.6 billion while the average daily turnover amounted to Rs.1.2 billion for the week (The week consisted of four trading days only). Turnover for the week was down by 49.1 percent compared to last week.

Foreign investors were net sellers during the week amounting to a staggering Rs.1.6 billion. Foreign purchases showed a 92.1 percent decline compared to previous week to total Rs. 464.8 million, while foreign sale witnessed a 41.5 percent drop to amount to Rs.2.1 billion. Foreign participation saw a dip in the week which stood at 27.6 percent of total activity compared to 52 percent posted last week indicating the strong input by local investors.

The highest traded stocks for the week were JKH, AHOT Properties, HNB, Seylan Bank (Non Voting), Janashakthi Insurance and Piramal Glass.

Momentum should continue

The week ended 24/12/2009 saw the ASPI moving from 3188.8 points to 3292.8 points amounting to 103.9 points while the MPI moving from 3630.5 points to 3777.2 points amounting to 146.8 points.

The bourse was predominantly up during the concluded “four day” week (three days out of the four days). Heavy local buying was witnessed during the week, compared to foreign purchases, which only accounted for 10.04 percent of total purchases value for the week. The local buying pressure was created by local institutions and high net worth clients.

However, the all expected “respite”, from the market was not seen during the week. However, with a three day week coming ahead, and with the current buying pressure we expect the market to sustain the upbeat with less steam.

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.

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