Confidence in equity markets to remain
The market edged up significantly with both the ASPI and MPI
recording a week on week gain to close at 6,845.38 and 6,210.07,
respectively. The ASPI increased by 4.71 percent and the MPI increased
by 2.99.
The weekly turnover value recorded a 43.98 percent increase to Rs
9.73bn, amounting to a daily average value of Rs 1.95bn, when compared
with last week’s daily average turnover of Rs 1.35bn. New entrant Browns
Investment LTD, Swarnamahal Finance and Brown and Company PLC accounted
for 17.28 percent of the week’s total turnover value. The number of
shares traded increased by 89.08 percent, averaging 110.94mn shares
traded daily as against 58.67mn traded last week.
The Banking and Finance sector led the turnover in value this week,
accounting for 25.03 percent of turnover in value amounting to Rs
2.43bn. The Diversified sector was the second highest contributor to
turnover, accounting for 18.25 percent amounting to 1.78bn. Third
highest on the turnover value list was the Manufacturing sector with
10.37 percent or Rs 1.01 bn.
Volume of turnover for the week was dominated by the Banking and
Finance sector with 239.86mn shares being traded or 43.24 percent of
volume of turnover.
The Diversified sector followed, representing 24.74 percent of total
turnover volume (137.22mn shares traded). Third highest contributor to
turnover volume was the Manufacturing sector, which accounted for 8.39
percent or 46.54mn shares.
Market Capitalization as at today’s close i.e. Rs 2,444.70bn,
recorded a gain of Rs 124.78bn in value or 5.4 percent as against last
week’s close. Three Acre Farms was the major price gainer (68.2 percent)
this week, closing at Rs 140.80 from last week’s closing price of Rs
83.70. Grain Elevators was the second largest price gainer, recording a
57.7 percent increase to close at Rs 140.80 (from Rs 89.30). Confifi
Hotels gained 46.3 percent from its previous price of Rs 194.30 to close
at Rs 284.20. Paragon was the major price loser over the week, declining
30.3 percent to close at Rs 1,875. Nanda Finance and AMF Co. LTD were
also major losers with Nanda Finance decreasing 26.0 percent to Rs 17.1
and AMF Co declining 18.9 percent to close at Rs 465.80. J.L Morison and
Abans Financial Services LTD declined 12.2 percent and 10.0 percent
respectively.
Foreign investors remained net sellers closing the week with a net
selling position amounting to Rs 531.68mn, relative to last week’s net
selling position of Rs 571.21mn. foreign purchases for the week total to
Rs 526.9mn as against Rs 658.8mn recorded last week.
Amana Takaful Insurance topped the volume list recording 157.6mn
shares changing hands representing 28.41 percent of the aggregate share
volume. Browns Investment LTD contributed 15.75 percent of aggregate
share volume with 87.4mn shares changing hands.
Point of view
The Colombo bourse continued to slide during the first two trading
days, however, recovered significantly gaining 351.8 points to close on
a positive note recording a 4.7 percent gain week on week. The market
was mainly driven by retail investor interest in blue chips and mid-caps
with sound corporate earnings reported so far boosting investor
confidence.
Sri Lanka’s sovereign ratings have been upgraded by both Fitch
Ratings and Moody’s recently, while the US$ 1bn bond has attracted
investor interest being oversubscribed seven times indicating investor
confidence in Sri Lanka’s macro-economic outlook.
This confidence should be reflected in the Equity Markets in future
and we expect the market to sustain its trend during the week ahead. |