Indices regain after mid week dip

The week started off with an optimistic note on Monday before dipping substantially during mid week. However, on Thursday and Friday indices managed to regain lost ground resulting in indices ending in green for the week.

This week the ASPI (All Share Price Index) gained 20.7 points or 0.54 percent to close at 3844.8 points while the more sensitive Milanka Price Index (MPI) gained 45.2 points or 1.03 percent to close at 4432.8 points.

Hotel Service PLC (SERV) contributed Rs.2.2 billion to the total market activity this week due to their 51 percent stake, which was purchased by Hayleys PLC. 106 million Hotel Service PLC shares were traded, becoming the largest contributor for the week.

Hotel Service PLC edged higher to close the week at Rs.23.00 per share compared to last week’s closing price of Rs.18.75 per share.

Apart from the above, Environmental Resources Investment (GREG) and Chevron Lubricants (LLUB) contributed considerably to the week’s turnover. Environmental Resources Investment contribution was approximately Rs.280.3 million and Chevron Lubricants was Rs.214.5 million to the total turnover, with approximately 1.1 million Environmental Resources Investment and 1.2 million Chevron Lubricants shares trading during the week. Environmental Resources Investment saw its price appreciating moderately by 16.6 percent to close at Rs.269.25 per share this week, while Chevron Lubricants ended the week at Rs.175.25 per share witnessing a dip of 0.4 percent Week-On-Week.

Overall activity levels abated marginally by 1.8 percent to Rs.6.3 billion this week, with turnover surpassing Rs.1 billion on Thursday and Friday. Hotel Service represented 35 percent of the total activity for the week. The average daily turnover this week stood at Rs.1.3 billion which too was a marginal dip of 1.8 percent when compared to average daily turnover posted last week.

The week saw a modest decrease of 16.4 percent in foreign purchases, to stand at Rs.0.7 billion and foreign sales to stand at Rs.2.2 billion witnessing a 64.7 percent increase. The resultant net outflow was Rs.1.5 billion. Foreign participation stood at 23.8 percent of total activity for the week.

The heavily traded stocks during the week were DFCC, NDB, Janashakthi Insurance, Seylan Bank (non- voting), Commercial Bank and Touchwood.

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.

All opinions, views, findings and conclusions included in this report constitute ASB’s judgment of this date and are subject to change without notice. ASB has the sole copyright for this report and the information and views contained cannot be reproduced or quoted in part or whole in any form whatsoever without the written permission from ASB.