Market remains volatile; regulatory decision likely to give
direction
Point of view
Markets see-sawed
over the week as regulators deferred the much anticipated decision on
the broker credit-easing rule. Bourse gains over the week were driven
mainly by retail investors, with Land & Property stocks in particular
seeing a slight run on speculative trading. Markets closed the week on a
positive note as retail sentiment improved in anticipation of a final
decision over the relaxation of margin buying rules by early next week.
Strong corporate earnings are likely to continue flooding in over the
course of the upcoming week. However, the outcome of the SEC’s decision
on credit easing is likely to dominate sentiment and overshadow the thus
far strong corporate earnings.
The market gained marginally with both the ASPI and MPI recording a
week on week gain to close at 6833.06 and 6186.71, respectively.
The ASPI increased by 1.21 percent and the MPI increased by 0.56
percent.
The weekly turnover value recorded a 74.46 percent increase to Rs
15.02 billion, amounting to a daily average value of Rs 3.00 billion,
when compared with last week’s daily average turnover of Rs 1.72
billion.
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Investors at the Colombo stock market |
Asian Alliance, Seylan Development Plc and East West accounted for
41.57 percent of the week’s total turnover value.
The number of shares traded increased by 30.79 percent, averaging
111.28 million shares traded daily as against 85.09 million traded last
week.
The Banking and Finance sector led the turnover in value this week,
accounting for 31.31 percent of turnover in value amounting to Rs 4.70
billion.
The Land and Property sector was the second highest contributor to
turnover, accounting for 23.91 percent amounting to Rs 3.59 billion.
Third highest on the turnover value list was the Manufacturing sector
with 13.56 percent or Rs 2.05 billion.
Volume of turnover for the week was dominated by the Land and
Property sector with 159.40 million shares being traded or 28.65 percent
of volume of turnover.
The Banking and Finance sector followed, representing 19.91 percent
of total turnover volume, or 110.76 million shares traded. Third highest
contributor to turnover volume was the Manufacturing sector, which
accounted for 19.64 percent or 109.30 million shares. Market
Capitalization as at today’s close was Rs 2448.91 billion recording a
gain of 1.5 percent or Rs 37.27 billion in value as against last week’s
close.
East West was the major price gainer with a 77.1 percent increase
this week to close at Rs 41.80 from last week’s closing price of Rs
23.60.
Lanka Hospitals Corporation Plc was the second largest price gainer,
recording a 49.1 percent increase to close at Rs 55.90 from Rs 37.50.
City Housing and Real Estate Co. gained 48.4 percent from its previous
price of Rs 18.20 to close at Rs 27.00.
Singalanka was the major price loser over the week, declining 65.1
percent to close at Rs 554.80. Confifi Hotel Holdings Plc and Eastern
Merchant were also major losers with a decline of 22.5 percent to Rs
226.00 and 17.2 percent to Rs 2506.70, respectively. Lanka Ashok Leyland
Plc and Kelani Cables declined 15.0 percent and 13.4 percent,
respectively. Foreign investors remained net sellers corresponding to
the volatility witnessed in global markets. The net selling position
over the week amounted to Rs 1258.91 million, relative to last week’s
net selling position of Rs 546.08 million. Foreign purchases for the
week total to Rs 572.94 million as against Rs 478.30 million recorded
last week.
Blue Diamonds [NV] topped the volume list recording |