Key sectors report robust growth
Last week’s trading at the Colombo bourse saw the indices gaining
ground gradually and the ASPI regaining losses to close at 5115.79,
50.72 points or 1 percent up from last week, however is still lagging
compared to the high reached during July 2010. The MPI closed the week
down 14.86 points 0.26 percent at 5744.59 points.
Total weekly turnover declined to Rs 9.34b recording a 53.5 percent
drop from last week’s value of Rs 20b corresponding with the declines in
trading volumes to 311.8m shares as against 604m shares traded last
week.
Market turnover was driven mainly by the banking and finance sector
contributing 30 percent of the total turnover for the week, followed by
the manufacturing sector accounting for 12.7 percent and diversified
sector 10.8 percent of week’s turnover value.
Banking sector index gained 141.8 points week on week with Commercial
Bank being the highest contributor to Turnover amounting to Rs 933.7m or
10 percent of weekly turnover. The stock traded within a band of Rs
175.10 to Rs 198.00 gaining 2.4 percent to close at Rs 194.60.
Other significant contributors to turnover were Touchwood Rs 475.4m,
Dialog amounting to Rs 423.5m, GREG and JKH.
Heavily traded stocks this week were Dialog with 40.5m shares being
traded, SMB Leasing, Piramal Glass, Touchwood and Nawaloka.
Foreign investors were net sellers this week amounting to an outflow
of Rs 596.85m as against a net buying of 3.23b last week. Foreign
purchases recorded was Rs 952m while foreign selling amounted to Rs
1.5b. Foreign trading levels have declined as against last week with
both buying and selling recording declines of 82.2 percent and 26.8
percent respectively.
Bairaha Farms is the top price gainer for the week gaining 37.68
percent to close at Rs 95.00. Malwatte, Grain Elevators and Renuka
Holdings have also recorded significant price gains week on week. Top
losers were Dankotuwa losing 40.8 percent and Blue Diamonds voting and
non voting both losing 38.27 percent and 34.15 percent respectively.
Point of view
Overall market activity levels have been relatively lower this week
in terms of value and volume with investors remaining on the side lines
and looking for direction. Earnings released so far report a healthy
growth in the banking sector QoQ while most companies in the plantations
sector reported positive earnings growth.
Overall results posted so far indicates key industries are
experiencing a positive earnings growth. Decline in prices of selected
fundamentally strong stocks this week, give impetus to bargain hunters
and medium term investors to consolidate their positions in the market. |