Bourse continues shining momentum
Hotel and Banking sectors perform well:
ASPI comfortably pierced the 4,000-points on Monday, hitting a new
high as investors returned after holidays enthused by anticipated higher
corporate earnings and political stability.
The Colombo Stock Exchange performs well. Picture by Sudath
The more sensitive MPI (Milanka Price Index) however showed a greater
increase gaining by 178.1 points or 3.9 percent closing the week at
Hotel Services (SERV) contributed Rs 1.8 billion to the total market
activity this week after trading 59.9 million shares in volume, becoming
the largest contributor for the week.
Hotel Services edged higher to close the week at Rs 31.00 per share
compared to last week’s closing price of Rs 28.00 per share, whilst
trading between a price band of Rs 27.75 and Rs 32.00 per share over the
Apart from the above, Keells Hotels and Sampath Bank contributed
considerably to the week’s turnover. Keells Hotels contribution was
approximately Rs 725.4 million and Sampath Bank contribution was Rs
481.4 million to the total turnover, with approximately 33.7 million
Keells Hotels and 1.8 million Sampath Bank shares trading during the
week. Keells Hotels saw its price appreciating by 2.47 percent to close
at Rs 20.75 per share this week, while Sampath Bank ended the week at Rs
284.75 per share which is an appreciation of 19.5 percent Week-On-Week.
Turnover for the week amounted to a staggering Rs 9.9 billion, which
was a 180.2 percent improvement compared to last week’s total activity
of Rs 3.5 billion. The average daily turnover stood at Rs 1.98 billion
compared Rs 1.18 billion posted last week.
Foreign participation this week stood at 20.4 percent of total
activity. Foreign Purchases for the week totalled Rs 1.2 billion, while
foreign sales were significantly higher at Rs 2.9 billion this week. The
resultant net foreign outflow amounted to Rs 1.7 billion. Volume wise
highest traded stocks this week were, Hotel Services, Nawaloka, Keells
Hotels, Tess Agro and Reefcomber.
Political stability gives clarity and direction
The week ended April 23, saw the ASPI move 154.7 points, and the MPI
178.1 points. The week started 19.04.10 saw high investor participation
after the holiday season. For the month of April the ASPI index has seen
a significant growth with approx 400 points or 10% up from levels of
Our prediction of the ASPI reaching 4000 was achieved during this
Our prognosis would be the ASPI to move to the 4200 levels in the
next week with occasional profit taking.
We expect the bourse to appreciate further in the medium term, with
positive perception in the political arena due to stability and
consistent policy framework and with the expectation of improved
From a sector perspective hotel, plantation, beverage and food and
construction sectors are expected release noteworthy earnings.
As per the latest earnings released, Hunas Falls and Lighthouse hotel
have recorded annual profits of Rs 23mn (190 percent YoY growth) and Rs
5.7mn (164 percent YoY growth) respectively.
The hotel sector earnings have been driven by the increase in the
tourist arrivals recording a 50 percent quarter on quarter growth to
160,000 approx (cumulative from January to March).
(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