Both indices gain on trading rule relaxations
The market gained slightly with both the ASPI and MPI recording a
week on week gain to close at 6951.64 and 6334.41, respectively.
The ASPI increased by 1.74 percent and the MPI increased by 2.39
percent.
The weekly turnover value recorded a 29.27 percent increase to Rs
19.42bn, amounting to a daily average value of Rs 3.88bn, when compared
with last week's daily average turnover of Rs 3.00bn. Colombo Land and
Development Company Plc, HVA Foods and Lanka Hospitals Corporation Plc
accounted for 34.32 percent of the week's total turnover value. The
number of shares traded increased by 30.62 percent, averaging 145.36mn
shares traded daily as against 111.29mn traded last week.
Turnover in value for the week was led by the Land and Property
sector, accounting for 26.93 percent, amounting to Rs 5.23bn. Second
highest contributor to turnover value was the Diversified sector
contributing 10.9 percent or Rs 2.12bn.
Third highest contributor on the turnover value list was the Banking
and Finance sector with 10.1 percent or Rs1.96bn. Power and Energy
sector dominated the volume of turnover for the week recording a total
of 133.06mn or 18.31 percent. The Banking and Finance sector followed,
representing 15.48 percent or 112.53mn.
Third highest contributor was the Land and Property sector which
accounted for 15.31 percent of turnover volume, with 112.26mn shares
being traded. Market Capitalization as at Friday's close was Rs
2492.23bn recording a gain of 1.8 percent (or Rs 43.32bn in value) as
against last week's close of Rs2448.91bn.
The major price gainer for this week was HVA Foods with an increase
of 132.9 percent, to close at Rs36.1. Colombo Land and Development
Company Plc was the second largest price gainer, recording a 53.6
percent gain closing at Rs 65.6.
Third highest price gainer was Multi Finance Plc with 38.5 percent
gain, to close at Rs 49.6 compared to its previous week's closing price
of Rs 35.8.
Ceylon Cold Stores Plc was the major price loser for the week,
declining 71.9 percent to close at Rs 112.2. Harischandra Mills Plc and
Lanka Ashok Leyland Plc were also major losers with a decline of 44.8
percent to Rs 1600 and 16.4 percent to Rs 3910, respectively.
Singalanka Standard Chemicals Plc and Orient Garments Ltd were also
amongst the top losers over the week.
Foreign investors remained net sellers, with a net selling position
of Rs 406.73mn compared to last week's net selling position of Rs
1.25bn. Foreign buying amounted to Rs 838.55mn representing a 46.36
percent increase over the week before. Foreign selling totalled Rs
1244.86mn, a week-on-week decline of 32.04 percent.
Panasian Power Plc topped the volume list recording 111.86 mn shares
changing hands representing 15.39 percent of the aggregate share volume.
Colombo Land & Development Company Plc contributed 8.59 percent of
aggregate share volume, with 62.43mn shares changing hands.
Point of view
The benchmark Index reached an eight week high early in the week as
the SEC's relaxation of broker margin trading rules revived investor
sentiment.
However, the momentum could not be sustained as markets were
primarily retail-driven on speculative stocks, while liquidity remained
constrained due to SEC's criteria on extending credit.
We expect similar sentiments to prevail during the week ahead and
advise investors to take positions in fundamentally strong stocks. |