REPORTS
Stock indices bearish
Both indices recorded an overall contraction of .27 percent of the
ASPI and .06 percent of the MPI. The ASPI shed 20 points to close at
7459.58 while the MPI shed 4.45 points, closing at 6875.54.
The weekly turnover recorded Rs 15.39 billion with a daily average of
Rs 3.07 billion, an increase of 12 percent from last week’s Rs 2.74
billion daily average turnover. The volume of turnover last week was
696.45 million shares averaging 139.29 million shares daily, whilst last
week’s volume was 140.43 million shares per day. The volume of turnover
contracted marginally week on week.
Colombo Stock Exchange |
Banking, Finance and Insurance sector continued to represent the
largest contribution to the weekly market turnover both in value and in
volume as it accounted for 21.9 percent of overall turnover in value and
32.4 percent of turnover in volume, driven by interests in Nation Lanka,
Central Finance, Commercial Bank and Janashakthi. The other major
contributors to total market turnover in value were Land and Property
sector representing 12.8 percent of the weekly turnover followed by the
Diversified sector with 10 percent of total turnover. Second on the list
of total turnover in volume was the Land and Property Sector with 8.9
percent whilst Diversified sector was third with 6.3 percent
contribution.
JKH was the major contributor of the aggregate market turnover,
accounting for Rs 1.14 billion or 7.4 percent of aggregate market
turnover of the week. Nation Lanka denoted 5.4 percent of aggregate
market turnover accounting for Rs 833 million.
Central Finance, Dunamis Capital and Touchwood were highlighted as
other major counters in the top turnover list, reporting total turnover
of Rs 813.1 million, Rs 605.8 million and Rs 597.9 million respectively.
CDIC recorded as the major price gainer for the week witnessing an
increase of 88 percent increase in share price as against previous
week’s price of Rs 215.00. The share closed at Rs 404.20. Dunamis
Capital reported a gain of 80.4 percent in comparison with previous
week’s price of Rs 13.80 closing at Rs 24.90. Serendib Land, Colombo
Land and CFT were other major price gainers of the week closing prices
at Rs 1,700.00, Rs 35.70 and Rs 11.2 respectively.
Swarnamahal Finance was the top loser of the week with a decrease in
price of 55 percent against last week price of Rs 100.00, to close at Rs
45.00. Eastern Merchant reported a decline of 32.2 percent in price to
close at Rs 1525, compared with previous week price of Rs 2250.00.
Bogala Graphite, Autodrome and Alufab were other major losers of the
week, as the shares closed at Rs 65.30, Rs 910.10 and Rs 107.10
respectively.
Foreigners remained net sellers this week with Rs 105.21 million
outflow as against last week’s outflow of Rs 291.79 million. Total
Foreign buying this week was Rs 1.23 billion, recording a daily average
of Rs 246.71 million as against last week’s daily average buying of Rs
365.98 million. Therefore total buying recorded a decline by 32 percent
week on week. Additionally, Foreign sales experienced a sharp
contraction of 42 percent with the total sales for the week at Rs 1.33
billion, averaging at Rs 267.7 million daily compared with last week’s
total sales of Rs 1.38 billion averaging at Rs 463.25 million daily.
Colombo Land was placed first in the top volume list with 77.44
million shares changing hands during the week. The counter represented
11.12 percent of aggregate market volume. S M B Leasing (Non-Voting)
traded 56.2 million shares contributing 8.12 percent to aggregate
turnover in volume. S M B Leasing (Voting), Pan Asian Power, Nation
Lanka recorded volumes at 53.3 million, 52.9 million and 33.2 million
respectively.
Point of view
The indices reflected mixed investor sentiments at the bourse as it
continued to be dominated by retail activities and the absence of major
institutional investments.
With regard to corporate profits, 88 percent of the counters that
have released their quarterly earnings upto now have recorded profits
with the Banking, Finance and Insurance sector recording the largest
contribution of the total attributable earnings.
We anticipate that the present momentum of activities will be
maintained during the week ahead.
John Keells Tea Market Report:
Monsoon likely to affect crops
The South West monsoon appears to have started to develop over the
Island, which will lead to heavy and incessant rain. From May to
September the South West monsoon will sweep across the Western central
highlands unloading heavy rains on the mountain slopes and emerge as dry
winds on the Eastern slope of the central hills heralding the start of
the Uva quality season which is famous for its distinctive flavour.
It’s a period when the tea bushes undergo severe stress conditions on
account of the harsh weather and consequently, crop intakes from both
sectors will show a substantial drop.
Depending on the severity of the monsoon these rains can bring gale
force winds and lashing rain in the South Western quarter.
Sri Lanka Tea Crop for the month of April 2011 at 28.4 mkgs is 5.6
percent below the corresponding month of 2010. Although High Growns have
once again recorded a gain during the month Medium and Low Growns have
both recorded shortfalls.
As at end April, Sri Lanka production at 106.3 mkgs reflects a gain
of 2.1 mkgs over last year which in fact was a record year.
Last week’s large volume of 1.8 mkgs. of Ex Estate teas commenced at
firm levels and appreciated as the sale progressed by Rs 10 to Rs 15 for
most invoices.
However prices were not sustained and once again tended lower towards
the latter part of the sale.
A fair weight of Low Grown, High and Medium CTC PF1s remained unsold
on account of little or no interest. Russia was selective, whilst the
Tea Bag sector lent only fair support. UK, Japan and Continental buyers
too were very selective.
The 3.9 mkg of Low Growns that came under the hammer last week, met
with better demand. In the Leafy category, although prices of Main
Grades commenced on a lower note, gained as the sale progressed, but
dipped again towards the latter part.
In the Small Leaf category, the well made teas appreciated in value,
whilst at the bottom end prices declined further. With the large volume
on offer, it is clearly evident that most markets are looking at well
made teas with the poorer sorts been neglected.
Western Teas
Select Best BOPs were firm to Rs 5 dearer, other good invoices gained
Rs 5, Below Best and Plainer varieties were firm to dearer. Select Best
BOPFs declined Rs 5 to Rs 10, other good invoices were irregularly
dearer, Below Best sorts which were Rs 10 dearer eased as the sale
progressed, plainer varieties too followed a similar trend. Medium BOPs
shed Rs 5 to Rs 10, whilst the BOPFs declined by a similar margin and
substantially more for the poor leaf sorts.
Nuwara Eliya Teas
Brighter BOPs declined Rs 10 to Rs 15 and more, others were firm to
Rs 5 dearer. Brighter BOPFs declined substantially whilst the others
were firm to marginally dearer.
Uva Teas
BOPs declined Rs 5 to Rs 10, whilst the BOPFs were firm to irregular.
Uda Pussellawa BOPs advanced Rs 5 to Rs 10 whilst the BOPFs were
irregular.
CTC Teas
Low Grown CTC PF1s declined Rs 5 to Rs 10 with a large volume
remaining unsold. BP1s declined Rs 20. High and Medium PF1s shed Rs 10
and more as the sale progressed with a large volume remaining unsold.
BP1s advanced Rs 5 to Rs 10 on average.
Low Growns
Lower demand. Select Best OP1s were firm to dearer by Rs 5 to Rs 10
whilst the balance were irregularly lower Rs 5 to Rs 10 and more at
times.
A few Select Best and Best BOP1s were firm to Rs 5 to Rs 10 dearer,
however the Below Best and poor sorts tended lower by Rs 5 to Rs 10.
Select Best along with the Best OP/OPAs eased Rs 5 to Rs 10, the balance
too declined by a similar margin and declined further as the sale
progressed.
Select Best and Best Pekoe/Pekoe1s were firm to Rs 3 to Rs 5 dearer
at times, however the balance shed Rs 10 to Rs 15, flaky types were
firm. Improved demand was witnessed for Tippy/Small Leaf category.
Select Best BOPs advanced Rs 5 to Rs 10, Best types maintained last
levels, Below Best types gained Rs 5 to Rs 8, poorer types gained Rs 5.
Select Best BOP. SPs were firm, Best types gained Rs 5 to Rs 10, Below
Best sorts were firm, poorer sorts were easier by Rs 5.
A few Select Best FBOPs advanced Rs 5 to Rs 10, others maintained
last levels.
Best types moved up Rs 5 to Rs 8, Below Best types were irregular,
poorer sorts were irregularly lower to last. Select Best and Best FF1s
moved up Rs 5 to Rs 10, Below Best and poorer sorts too moved by Rs 5 to
Rs 8.
Select Best tippy varieties met with improved demand and gained above
last, Best types too gained Rs 10 to Rs 20, Below Best and poorer sorts
were irregular.
Off Grades
Select Best liquoring Fngs1s appreciated by Rs 10 to Rs 15, whilst
the Below Best and poorer sorts advanced Rs 10. Select Best and Best BMs
appreciated by Rs 5 to Rs 10, whilst the poorer sorts were dearer by Rs
10 to Rs 15. All BPs sold at firm levels. All Low Grown Fngs were lower
by Rs 10 Select Best BOP1As along with the Best appreciated Rs 5 to Rs
10 and more at times whilst Below Best and poorer sorts were firm to
dearer by Rs 10 to Rs 15 from last levels.
Dust
Select Best Dust1s were firm. Improved teas in the Best and Below
Best category appreciated Rs 5 to Rs 10 whilst the balance were firm.
Poorer sorts declined Rs 10 to Rs 15. Clean secondaries were firm whilst
the balance gained Rs 5 to Rs 10. Best Low Grown Dust/Dust1s were firm
whilst the balance gained Rs 10 to Rs 15. |