Acuity Stockbrokers Research
The bourse, once again closed in the red, with the ASPI losing 148.21
points (2.50%) and the MPI losing 129.20 points (2.56%). The ASPI closed
at the week at 5781.13 points and the MPI closed at 4916.89 points.
Asia Asset Finance Ltd, PC Pharma Ltd and Environmental Resources
Investments Plc dominated turnover value for the week, contributing a
total of 44.28% to the market. Weekly turnover value increased 18.87% to
Rs 4.50 billion compared to last week’s value of Rs 3.78 billion.
Average weekly turnover was Rs 1.12 billion, a 48.58% increase from last
week’s average of Rs 756.61 million. Market Capitalization however
declined 2.42% to Rs 2116.05 billion.
The Banking and Finance sector dominated weekly turnover value,
contributing 35.50% (Rs 1596.21 million) of the market’s total turnover
value. The Chemicals and Pharmaceuticals sector followed suit,
accounting for 17.94% of turnover value, or Rs 806.56 million; the
Investment Trust sector meanwhile contributed 10.63% or Rs 478.12
million while the Manufacturing sector contributed 10.52% or Rs 473.07
million to the market. The Banking and Finance sector led the weekly
turnover volume for the third consecutive week, accounting for 55.58%
(or 154.96 million shares) of the market’s total share volume. The
Manufacturing sector trailed behind with 31.84 million shares changing
hands (representing 11.42% of total turnover volume), while the
Chemicals and Pharmaceuticals sector accounted for 6.47% or Rs 18.03
million. New entrant PC Pharma Ltd recorded the highest price hike over
the week, closing at Rs 53.90 relative to its reference price of Rs
10.00. Good Hope Plc closed at Rs 1650.00, representing a 39.59% gain,
while Samson International Plc gained 16.86% to close at Rs 137.90. EB
Creasy & Company Plc and Serendib Land were also amongst the top price
gainers, recording gains of 15.86% and 12.11%, respectively.
Paragon Ceylon Plc led the price losers list, losing 26.28% to close
at Rs 1400.00. Singalanka closed down 16.45% at Rs 115.30 while Riverina
Hotels lost 15.65% over the week to close at Rs 92.70 Foreigners’ closed
the week in a net selling position (Rs 58.55 million) yet again this
week; this nevertheless, represents a 69.68% decrease from last week’s
net selling position of Rs 193.11 million. Total foreign purchases for
the week rose 38.48% to Rs 657.11 million as against last week’s value
of Rs 474.50 million. Total foreign sales meanwhile, increased 7.20% to
Rs 715.66 million. Asia Asset Finance Ltd, once again topped the volume
list accounting for 41.01% or Rs 114.35 million of the week’s aggregate
share volume. Blue Diamonds (NV) contributed 6.57% (Rs 18.31 million) of
the market’s total share volume.
Point of view
The SEC’s relaxation of broker credit failed to stimulate markets,
with investors choosing to remain on the sidelines amid selling
pressure. Turnover levels nevertheless, remained relatively robust,
hovering over 1 billion for two consecutive days before declining to
just below a billion by Friday.
We expect markets to regain lost ground in the weeks ahead as the
existing liquidity shortage in markets is addressed to some extent by
brokers’ ability to increase lending. Markets are also likely to be
buoyed by Q4 earnings which have just begun to trickle in and which are
likely to be robust once again this quarter.
Acuity Stockbrokers Research |
