Market gathers upward momentum
The four day trading week saw the market dipping marginally at the
start of the week, but both indices climbed up at an accelerated pace to
close off at ASPI 6023.4 and MPI 6278.31.
The ASPI records an all time high at Friday’s close, gaining 142.9
points (2.4 percent) while the MPI gained 211.5 points (3.49 percent)
Total turnover for the week is Rs 17.08 billion which was an increase
of 15.47 percent from last week’s total of Rs 14.798 billion. Share
volumes traded this week was 353.4 million shares as against 503.18
million shares traded last week recording a decrease in volumes traded
by 29.77 percent. Highest contributors to market turnover this week was
the Diversified sector contributing 35.8 percent of the turnover
amounting to Rs 6.1 billion, overtaking the Banking and Finance sector
which was holding this position last week.
The banking and finance sector accounted for 19.5 percent of the
total weekly turnover, amounting to Rs 3.3 billion. The diversified
sector index gained 86.32 points to close at 2050 while banking and
finance sector index gained 461.78 points week on week to close at
13144.47 Aitken Spence leads the list of top contributors to turnover
recording Rs 3.08 billion representing 13.13 percent of total turnover.
Distilleries increased their holdings in Aitken Spence to consolidate
its position as an associate company. JKH amounted to 4 percent of total
turnover, posting Rs 2.03 billion.
SMB Leasing topped the list of heavily traded stocks this week with
48.1 million shares changing hands while Keells Hotels traded 44.4
million shares respectively.
Foreign investors were net sellers this week amounting to an outflow
Rs 2.40 billion as against a net selling of Rs 340.4 million recorded
last week. Foreign purchases amounted to Rs 1.98 billion while foreign
selling amounted to Rs 4.39 billion. Foreign trading levels sky rocketed
on the second trading day and slowed down closer to end of this week
with both buying and selling showing an increase of 57 percent and
173.68 percent respectively.
Alliance is the top price gainer for the week gaining 45.9 percent to
close at Rs 736. Reefcomber and Three Acre farms recorded 43.9 percent
and 36.3 percent gains on price respectively.
Top losers were Trans Asia losing 49.6 percent to close at Rs 186.2
followed by Ceylon Hospitals Ltd, losing 17 percent and The Finance Co.
losing 15.9 percent.
Point of view
The market took an early breather this week on the back of profit
taking, however picked up pace and gathered momentum during the week’s
trading to close at an all time high with the ASPI surpassing 6000
points to close at 6023.41.
The market has seen a 20 percent gain within the last 31 trading days
taking the ASPI from the 5000 points range to this new high today. The
market capitalization currently stands at 1,983.09 billion.
We expect the current momentum to continue to the week ahead with
investor interest in fundamentally strong stocks continuing to boost