Colombo bourse shows upward trend
The market continued its upward trend during the week with both
indices gaining over 5 percent. ASPI closed at 6457.28 points gaining
320.3 points or 5.3 percent from the previous week while the MPI
recorded gain of 337.72 points to close at 6757.50.
The aggregate turnover for the week increased to Rs 21.4 b with the
highest contribution of Rs 5 b coming in towards the close of the week .
The weekly gain in turnover was 25 percent. The total of share volumes
traded this week records at 554.58 m shares reflecting a 56.92 percent
rise over the last week volumes of Rs 353.4 m.
Banking and Finance sector at 32.4 percent was the major contributor
to market activity with total turnover of Rs 6.9 b. Major banks that
rallied the sector were Commercial, Seylan, National Trust Bank and
Sampath. The banking and finance sector index gained 2119.8 points and
the diversified sector index gained 134.7 points. Diversified sector
followed bringing in 20.31 percent of the total weekly turnover.
JKH leads the list of top contributors to turnover recording Rs 1.24
b amounting to 5.8 percent of total turnover trading within a price
range of Rs 280.10 and Rs 290. Distilleries contributed to 5.28 percent
of total turnover with its Rs 1.12 b trading volume, closing at Rs
186.50. Aitken Spence, which was awarded a LOI for development of South
Port Container Terminal saw investor interest and traded between Rs
2,819.30 and Rs 2,999.60, recording turnover of Rs 998 m. Piramal Glass
topped the list of heavily traded stocks this week with 66.95 m shares
changing hands while Reefcomber and SMB Leasing traded 47.26 m and 40.64
Foreign investors were net sellers this week amounting to a net
outflow of Rs 22.5 m as against a net selling of Rs 2.4b last week.
Foreign purchases amounted to Rs 2.31 b while foreign selling amounted
to Rs 2.33 b.
Foreign trading levels indicate a decline this week with both buying
and selling showing a decrease of 46.8 percent and 99.06 percent
MTD Walkers is the top price gainer for the week gaining 60.96
percent to close at Rs 595.70 as against last week’s price of Rs 370.10.
Ceylon Theatres and LB Finance also recorded significant price gains
week on week. Top losers were CFT, losing 89.53 percent and Colombo
Pharmacy losing 13.15 percent, followed closely behind by ACME losing
Point of view
Both indices continued to gain during the week despite intra day
volatility early on due to profit taking. Market capitalization
surpassed Rs 2 trillion recording a gain of 86 percent year to date
amounting to 42 percent of GDP. Market responded positively to the
removal of 10 percent price band effective Monday 20 with both the ASPI
and MPI gaining 218.83 points or 3.5 percent and 268.79 points during
Thursday and Friday