CSE sets benchmark
The market witnessed an initial drop only to bounce back with gains
during the later part of the week.
The market was further boosted with the rupee reaching a new high
after two decades and confidence echoed by the global investors through
dollar bonds issue.
ASPI crossed the 7000 mark and closed at 7147.77 with addition of
259.28 points up by 3.8 percent from the preceding week. Milanka was up
by 7.78 percent gaining 565.4 points to close at 7829.05. The aggregate
turnover for the week was Rs 21.98 b, a fall by 2.54 percent over the
last week.
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Point of view |
Strong
investor confidence in the turnaround and potential of the Sri
Lankan economy has been endorsed throughout the past week with
the IMF releasing its fourth tranche of US $ 212.5 m under the
US $ 2.6 b Stand By Arrangement and the US $ 6 b+ bids for the
US $ 1 b sovereign bond.
Backed by the macro economic stability the Colombo bourse
continued to surge ahead with the ASPI surpassing 7000 points
bringing the year to date return of the market to 111 percent
with daily average turnover for 2010 of Rs 2.33b as against Rs
0.59 b in 2009.
We expect the market to build on the current run with investor
interest in blue chips and selected mid caps with room for
further price appreciation backed by earnings potential to drive
market activity. |
Turnover declined towards the earlier part of week with daily average
of Rs 3.4 b which recovered to Rs 5.90 b towards the latter part of the
week.
Market capitalization was at Rs 2358 b up by 3.78 percent an addition
of Rs 85 b. The sector lead was maintained by Banking and Finance sector
with 25.62 percent of market share. The sector index increased by 640.69
points to close at 18000.45.
The major contributors were Commercial(Non Voting), Seylan, Nations
Development Bank, and DFCC.
Diversified sector followed with 17.34 percent share in turnover and
a gain of 375.63 points wow to close at 2561.15 JKH was the highest
contributor adding Rs 2.48 b to the total turnover with total share of
nearly 11 percent.
The share closed at Rs 355.1 up by nearly 18 percent.
Dockyard was placed second highest contributor to turnover at 5
percent with Rs1.1 b. Commercial Bank contributed Rs 871.8 m to close at
Rs 294.5.
Sierra Cables was the most traded stock this week with volume of 59m
shares changing hands followed by SMB Leasing with 50 M shares. Dialog
was another active stock where 47 m shares were traded. Foreign
investors continued to be net sellers during the week with net outflow
of Rs 2243.26 m with average daily of Rs 448.65 m.
Foreign selling was up by 45.31 percent at Rs 3857.54 m as against Rs
2654.78 m in the earlier week.
Foreign purchases amounted to Rs 1614.28 m with daily average of Rs
322.85 m as compared to Rs 2451.97 m in previous week reflecting a fall
by 34.16 percent wow.
Top gainer for the week was Bogala Graphite up by 79 percent to close
at Rs 61.60 followed closely by Renuka Agri which recorded 60 percent
price change to close at Rs 7.70. Eastern.
Waterfall CIT and Colombo Pharmacy were top losers losing 89 percent,
41 percent and 31 percent respectively.
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