MARKETS

Retail investors on sidelines ahead of Budget 2012?

Mercantile Shipping Co. Plc topped the price losers list closing at Rs 266.60, a drop of 14.00% from last week’s close of Rs 310.00. Infrastructure Developers Plc lost 13.11% to close at Rs 156.40, while Udapussellawa Plantations Plc declined by 13.01% to close at Rs 36.10. Sunshine Holdings Plc and Lanka Ventures Plc were also amongst the top price losers declining 11.01% and 10.91%, respectively. The bourse once again closed with a net foreign buying position of Rs 323.84 million representing 156.57% gain from last week’s net buying position Rs 126.22 million.

The net daily average was Rs 107.95 million as against last week’s average of Rs 25.24 million. Piramal Glass Ceylon Plc topped the volume list accounting for 7.79% (or 5.14 million shares) of the week’s aggregate share volume, Blue Diamond (NV) meanwhile, contributed 6.48% of the total. Both the ASPI and MPI closed on a negative note during the three-day week with the ASPI losing 74.05 points or 1.16% and the MPI losing 46.98 points or 0.82%. The ASPI closed at 6332.47 points and the MPI closed at 5651.87.

Turnover in value for the week was led by JKH, Chevron Lubricants Lanka Plc and Sampath Bank which accounted for 30.00% of aggregate turnover volume. The weekly turnover value decreased by 73.53% to Rs 1720.28 million relative to last week’s closing amount of Rs 6498.01 million. Daily average volumes for the week amounted to Rs 573.43 million as against last week’s value of Rs 1299.60 million representing a 55.88% decline. Turnover in volume, too, saw a decline (79.14%) over the week as 65.98 million shares changed hands as against last week’s 316.35 million shares.

Turnover in value for the week was dominated by the Diversified sector which accounted for 29.62% of total turnover value or Rs 509.55 million. This was followed by the Banking and Finance sector contributing Rs 343.76 million (19.98%) to the market. The Manufacturing sector, too, topped the list with a contribution of 16.76% amounting to Rs 288.40 million. Weekly turnover volume was dominated by the Banking and Finance sector accounting for 30.54% of total turnover volume as 20.15 million shares changed hands.

The Manufacturing sector contributed 22.32% or 14.72 million shares, while the Diversified sector saw 10.41 million shares changing hands (15.78%). Market capitalization over the week decreased 1.16% to close at Rs 2277.53 billion relative to last week’s value of Rs 2304.16 billion. Lanka Ashok Leyland Plc, the top price gainer for the week, closed at Rs 3700.00 representing a 23.33% gain from last week’s price of Rs 3000.00. Huejay International Investments Plc closed up 19.73% at Rs 174.80 while Miramar Beach Hotel Plc gained 17.24% to close the week at Rs 285.00.

Point of view

Lacklustre trading dominated the shortened week, with turnover hitting a new eleven-month low on Friday.

The Index closed marginally higher on Friday however, amid stock-picking in blue-chip counters by local and foreign funds and high net-worth investors. Credit constraints however, have pushed Retail investors who have thus far dominated markets to the sidelines. Similar sentiments should prevail in the week ahead as investors adopt a ‘wait-and-see’ approach ahead of the 2012 Budget. Preliminary readings of the budget indicate a 15.8% increase in total estimated expenditure and a 13.1% increase in expected income as the GoSL aims to contain the budget deficit at 6.2% of GDP.

Credit cardholders to experience cash back surprises this season

HSBC launched an innovative campaign that will surprise cardholders each time they shop, during the festive season from November 15 until December 31, 2011.

For the first time in the market, the new concept of rewarding cardholders through the “Approval Code” which appears on the individual credit card slip is set to surprise many credit cardholders with a ‘Cash Back’ offer. This will enable cardholders to win up to 100% of their transaction bill value. A main feature of the promotion is that all credit cardholders who spend a minimum of Rupees 2,000 on their HSBC credit card on any transaction slip will be eligible to win.

The promotion allows cardholders to be part of the winning process, as he or she could instantly add up the six-digit Approval Code of the credit card charge slip to calculate the winning cash back amount. The sum of these digits can range from a minimum of 1 (when the Approval Code is 000001) to a maximum of 54 (when the Approval Code is 999999) i.e. 9 x 6 = 54.

While, cardholders are allowed to use their credit card many times over in a single day, they will be credited with the winning rebate/s within 10 days, with the total winning amount reflected on their credit card statement, the following month.

Add to this, customers will be entitled to earn instant Rewards points and enjoy special seasonal savings and offers from the Bank’s diverse merchant partner network, under the categories of fast food, clothing, lodging, dinning, travel, electronics and household goods.

Discounts ranging from 10% - 50% with buy one get one free offers, are also featured throughout the promotion at Ilgelato, The Bay Leaf, Jetwing Hotels, Elephant Reach, Yala, Abans, Singer and Singer Homes, The Commons, Union Bar & Grill, Jaic Hilton, Chaaya Blu, Trincomalee, Cotton Collection, Basics Life - Gents Clothing, Kadapatha, DSI, Leather Collection, DL Step, Adidas, Vogue, Odel, Mondy, Ranjanas, AMA Exclusive Saree Collection, Pride, Just U, Farlin & Toys, The White House, Z Den and Techno Vision.

Furthermore, cardholders will enjoy 20% off at all Keells outlets on fresh vegetables, fruits, meats and seafood from 4.00pm to 8.00pm, throughout the season and beyond until January 15, 2012.

Commenting on this unique promotion, HSBC Heads of Cards and Consumer Assets Nadeesha Senaratne said, “We believe in staying close to our customers and their emerging trends.

Noting that everyone is looking forward to surprises during the season, we devised this promotion to give our credit cardholders a chance to win cash back each time they shop with their HSBC credit card.

It also gives them a chance to enjoy Rewards and discounts which doubles the surprise. We hope this will be a rewarding experience for all credit cardholders this season.”

During the promotion, customers have the chance of winning up to a maximum of Rupees 100,000 on a single transaction slip. For details on the promotion and a suite of banking products, customers can log onto www.hsbc.lk.