|
Weekly Market Review:
Foreign institutional buying push volumes to 4 year high
The ASPI lost 7.22 points to close the week at 5449.05 points down
0.13% compared to the previous week. The MPI however gained 42.61 points
(up 0.88% W-o-W) to close the week at 4864.25 points. JKH accounted for
85.31% of total market turnover this week as a significant foreign
purchase worth Rs 14.35 billion boosted the counter. Also among the top
contributors to the week’s turnover value were Aviva NDB and Orient
Garments Plc, which cumulatively contributed a 3.12% of total turnover
value.
The turnover value for the week increased drastically to Rs 18.22
billion, averaging Rs 3.64 billion relative to last week’s daily average
of Rs 0.56 billion. Market capitalization however, declined 0.13% over
the week to Rs 1997.99 billion (Rs 2000.61billion previously). The
Diversified sector - aided mostly by JKH (Rs 15.54 billion) - dominated
the market’s weekly turnover value; the sector accounted for 86.31% of
total market turnover value or Rs 15.72 billion.
The Banking and Finance sector contributed 5.65% of the week’s
turnover or Rs 1.03 billion, while the Manufacturing sector’s turnover
value amounted to 495.41 million, a contribution of 2.27% to total
market turnover. Turnover volume for the week was also dominated by the
Diversified sector as 80.09mn JKH shares helped the sector contribute
46.72% or (96.23 million shares) of the total market volume. The
Manufacturing sector accounted for 17.59% or (36.23 million shares),
while 13.28% of the market’s share volume was contributed by the Banking
and Finance sector where 27.36 million shares changed hands.
Asiri Central Hospitals Plc was the highest price gainer for the week
closing at Rs 181.00 to represent a 29.29% gain from last week’s close
of Rs140.00.
E B Creasy & Company Plc gained 20.00% to close the week at Rs
1200.00 and Equity Two Plc closed up 19.74% at Rs 27.90. Amongst the top
price losers was Beruwela Walk Inn Plc which declined 22.85% to close at
Rs 130.00 from last week’s close of Rs 168.50. CDB [NV] followed suit,
closing at Rs 45.70, down 22.54% while Agstar Fertilizers Ltd lost
20.63% over the week to close at Rs 15.00. JKH led the volume list this
week, accounting for 38.89% or 80.09 million shares of the week’s
aggregate share volume. Orient Garments Plc and PC Pharma Plc together
contributed 13.17% (or 27.13 million shares) to the market’s total share
volume.
Point of view
Markets which were sluggish for most of the week rebounded sharply on
Friday with volumes reaching a new high (Rs 15.7 billion) since 2008.
Large transactions by International Investment Bank CIMB’s largest
shareholder Khazanah Nasional in blue-chip JKH pushed volumes to new
highs, boosting overall markets. The transaction also helped the
bourse’s net inflow for the first three months of the year to reach US $
142 million, a sharp contrast to a net outflow of US $ 153 million for
the full year 2011. Large block trades in banking counters such as HNB
and COMB also propped volumes and helped the main Index gain 24 points
over the week and 52 points on Friday. Next week’s volumes too are
likely to be influenced by potential large government transactions,
targeted for foreign investors and aimed at easing pressure on the
Rupee.
The Central Bank on Wednesday meanwhile downgraded its 2012 GDP
growth forecast to 7.2% (from 8.0% previously).
Policy rates however, were held steady despite market expectations of
an increase and the recent wide fluctuations in the Rupee. The Rupee
depreciated against most of the major currencies over the week, with the
US $ recording a new high of Rs 126.30 at close of trade on Friday.
Acuity Stockbrokers Research | Sri Lanka Equities |
