MARKETS
Credit restrains sentiments
The week ended in the red as the four-day trading week closed with
both indices losing 1.56 percent and 1.66 percent respectively, with the
ASPI down by 118.04 points and the MPI shedding 117.14, as against last
week's position. The ASPI closed at 7456.82 and the MPI recorded
6947.11. The turnover in value this week contracted by over 42 percent
as the market averaged at Rs 1.73 billion turnover daily as against last
week's daily average turnover of Rs 3.03 billion with the main trades
being brought in by Banking and Finance sector. The average daily volume
of turnover however saw an increase of 96 percent with the crossing of
shares in Free Lanka leading the way to record 67.95 million shares
traded as against last week's 34.68 million. The market recorded better
activity levels this week with trades up by 25 percent more than that
averaged last week.
The highest contributor to the weekly turnover value was the Banking
and Finance Sector with over 28 percent contribution driven by trading
in shares of NDB, and Central Finance. Second highest contributor to
turnover was the Diversified sector, seeing a contribution of over 20
percent whilst Manufacturing sector was the third highest contributor
this week with 10.2 percent of total turnover. The drop in the indices
was influenced by the down wardmovement seen in almost all prices,
especially with those in Oil Palms sector which lost 5370.79 points
followed by the Services sector which lost 3472.76 points.
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Free Lanka featured as the highest contributor to turnover this week
as the share closed at Rs 5.50 from opening price of Rs 5.00 with 129.8
million shares changing hands, as the counter represented 10.8 percent
of this week's total turnover amounting to Rs 751.04 million. National
Development Bank was placed second highest contributor with turnover of
Rs 715.71 million as 4.43 million shares crossed for the share to close
at Rs 172.20 which accounted for 10.3 percent of the weekly turnover.
Central Finance also witnessed 453.27 million worth of shares being
traded this week with the share price closing at Rs 1404.60, accounting
for 6.5 percent of the weekly turnover.
Paragon was this week's Top Price Gainer as the share closed at Rs
1012.50, recording a price gain of 237.5 percent, while Print Care also
saw its share price rising by 108.8 percent to close at Rs 295.40.
Huejay witnessed a share price increase of 61.1 percent as the share
closed at Rs 240.4. Other price gainers were Miramar, Gestner, and
Hayleys Exports which saw price increases of 60.8 percent, 58.4 percent
and 30.4 percent respectively.
The list of Top Losers this week was headed by E-Channeling which saw
its share price dip to Rs 3.90 from its opening price of Rs 29.00, a
decrease of 86.6 percent. Second on the list was Singalanka which saw
its price dip by 44.3 percent to close at Rs 1304.20 from the opening
price of Rs 2339.40.
Union Chemicals also witnessed a price decrease as the share closed
at Rs 868.30 from Rs 1002, with a decrease of 13.3 percent. Free Lanka
shares were the most traded this week as nearly 48 percent of the weekly
volume in turnover was brought about by trading in the share resulting
in turnover of Rs 751 million. Dialog was the second most popular share
as Rs 120.2 million worth of shares brought in 4.3 percent of weekly
turnover in volume. Other popular shares were Nation Lanka, SMB Leasing,
and Panasia Power.
Foreign investors took a back seat this week as both buying and
selling witnessed contractions. Foreign buying shrank by over 53 percent
to record daily average purchases of Rs 112.63 million as against last
week's Rs 241.14 million daily average purchasing while foreign selling
averaged at Rs 329.10 million daily compared with last week's Rs 732.82
million daily average, a contraction of 55 percent. Foreigners closed
the week as net sellers amounting to Rs 865.88 million.
SMB Leasing shares were the most traded this week as it accounted for
7.9 percet or 5.5 million shares, of the week's total turnover in
volume. The share closed at Rs 2.10.
The bourse closed the week's trading with both indices recording a
decline on the back of selling pressure by retail investors. Illiquid
stocks have continued to attract investor interest driving its prices
upward however on relatively small volumes. Institutional buying into
selected stocks should continue into the week ahead while the credit
crunch continues to curtail liquidity in the market. |