Market ends in red despite Monday gains

The market ended the week in red territory owing mostly due to retail investors profiting out which also coincides with end of the month settlement dates.

The ASPI (All Share Price Index) closed the week at 4,601.5 points down by 5.8 points or 0.13 percent compared to last week, while the MPI (Milanka Price Index) appreciated by 18.7 points or 0.35 percent to close at 5,290.1 points on Thursday.

Seylan Bank Non Voting was placed highest in terms of activity levels for this week, with a trading volume of 31.32 million shares.

It added over Rs 1.43 billion to the week’s turnover. Seylan Bank Non Voting closed the week at Rs 45.50 per share compared to last week’s closing price of Rs 44.25 per share, whilst trading between a price band of Rs 43.25 and Rs 49.50 per share.

Apart from the above, Sampath Bank and John Keells Holdings contributed considerably to the week’s turnover.

Sampath Bank contribution was approximately Rs 1.1 billion and John Keells was Rs 1.09 billion to the total turnover, with approximately 3.4 million Sampath Bank and 5.3 million John Keells Holdings shares trading during the week.

Sampath Bank saw its price appreciating by 6.6 percent to close at Rs 358.25 per share this week, while John Keells Holdings ended the week at Rs 204.50 per share a dip of 0.24 percent Week-On-Week.

Ceylon Hotel Corporation was a also heavily traded stock during the week.

Employees Provident Fund (EPF) bought a 11.63 percent stake in Ceylon Hotels Corporation for Rs 700 million.

The stake amounting to 20 million shares were crossed hands at Rs 35 each. Ceylon Hotel Corporation saw its price appreciating by 2.21 percent to close at Rs 34.75 per share whilst trading between a price band of Rs 33.75 and Rs 36.75 per share.

Overall activity levels increased by 49 percent to Rs 11.57 billion this week.

The average daily turnover stood at Rs 2.89 billion compared Rs 1.94 billion posted last week.

Foreign investors were net sellers this week amounting to a net amount of Rs 0.89 billion. Foreign purchases showed an increase of 150.6 percent to stand at Rs 1.89 billion, while foreign sales witnessed an increase of 101.5 percent amounting to Rs 2.78 billion.

Foreign participation stood at 20.21 percent of total activity.

Volume wise highest traded stocks this week were Seylan Merchant, Dialog, Overseas Reality, Seylan Bank Non Voting and Hotel Corporation.

‘Mediocre market status’ continues

The four day week ended June 24, 2010 ended with the ASPI at 4601.5, which is 5.8 points below the last week.

However, the initial momentum on Monday trading was not being visible during the rest of the week.

The popular sentiment was that since it is the end of the month, the retail investors were profiting out due to settlement dates.

We feel the market would remain mediocre for the next few weeks as well. Albeit, the current mediocre market, Acuity research advises investors to hunt for low multiple stocks and also stocks that have potential but trading below Net Asset Value.

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