Market gains

The week saw the both market indices gaining with the ASPI up 197.41 points - an increase of 3.10 percent, and the MPI up by 150.96 or 2.21 percent week on week. The oil palms sector indices gained 8410.18 points or increase of 9.2 percent week on week while Investment Trusts and Services sector indices moved by 4.2 percent.

The upward thrust of the indices were backed by all other sectors apart from Construction Engineering which was the only sector that moved down by 50.24 points against last week. Value of turnover decreased by 37 percent against last week’s Rs. 11.36 billion to close the week at Rs. 7.10 billion with a 14 percent decline in volumes traded against last week. Market capitalization recorded at Rs. 2.1 billion with 25 P/E Ratio and PBV multiples of 3.

The week’s highest turnover value was generated by the diversified sector at Rs. 2.6 billion accounting for 36.7 percent of the total turnover value, with a volume of 19.17 million shares or 8 percent of Turnover volume. JKH and Aitken Spence were the main contributors to this sector.

Highest turnover in terms of volume was from the Banking and Finance sector which accounted for 51.56 percent of total turnover volumes this week. Janashakthi and SMB Leasing were the main contributors to the Bank and Finance sector turnover volume. Manufacturing sector generated a Turnover volume of 37 million or 15.47 percent buoyed by activity in Piramal Glass and Grain Elevators.

JKH accounted for the highest contribution to the market turnover with Rs. 2.1 billion, accounting for 30 percent of total value of market turnover. JKH closed at Rs. 302.50. Bairaha Farms witnessed a turnover of Rs. 574 million with the scrip closing at Rs. 267.

Commercial Bank and Grain Elevators represented 5.22 percent and 5 percent of market turnover this week. S M B Leasing (voting) placed highest scrip traded during the week representing 21 percent of aggregate market volume. Piramal Glass and S M B Leasing (Non Voting) were active stocks in the market with 15.3 million and 8.3 million shares changing hands respectively.

The week saw several counters such as Bukit Darah and Carsons capitalization of reserves. Foreign activity levels were high this week with both buying and selling seeing improvements week on week.

With JKH being one of the counters which attracted their interest, foreigners remained net sellers once again, with total sales amounting to Rs. 1.77 billion as against the Rs. 1.53 billion recorded last week, an increase by 15 percent week on week. foreign buying was Rs. 1.15 billion this week as against last week’s Rs. 502 million, an increase of 122 percent from that recorded last week.

Confifi Hotel emerged as the week’s top gainer recording a increase of 26.9 percent on the scrip price which closed at Rs. 279.20. Coco Lanka (Non Voting) and Bairaha Farms reflected a northward momentum closing at Rs. 50.90 and Rs. 267.00 respectively. Colombo Investment Trust was the top loser of the week with a dip of 16.5 percent on the share price to close at Rs. 176 as against last week’s Rs. 210.80. Finlays Colombo and Tea Services were other losers, with the scrips closing at Rs. 175 and Rs. 700.10 respectively.

Point of view

The bourse’s trading volumes will continue to be relatively static next week although retail investors looking to pick up bargains in blue chips stocks will be seen active in the market.