|
Markets
Acuity Market Report:
Thin volumes predominate as FX speculation dulls investor sentiment
Both indices declined over the week with the ASPI and MPI declining
by 16.61 and 66.17 points respectively. The ASPI closed at 5440.52
points, down 0.30%, while the MPI closed at 4857.40 points, a 1.34%
decline over the week. The Finance Company (TFC) - mainly aided by large
block trades which took place on Friday - led the turnover value for the
week, contributing 19.59% to total market turnover. JKH accounted for
11.38% (or Rs 229.64 million) and CIC contributed 5.01% which amounted
to Rs 101.21 million.
The turnover value for the week increased 7.40% to Rs. 2.02 billion,
averaging Rs 403.70 million per market day compared to last week’s
average of Rs 375.88 million. Market capitalization however declined
0.24% to Rs 2024.84 billion over the week. The Banking and Finance
sector continued to dominate the week’s turnover value, accounting for
38.21% of the total turnover as it contributed Rs 771.32 million to the
market. The Diversified sector contributed 20.45% (Rs 412.80 million) to
total market turnover while the Hotels and Travel sector accounted for
7.77% (or Rs 156.88 million) of the week’s total market turnover value.
The total market turnover volume for the week too was led by the Banking
and Finance sector which accounted for 47.49% of total market volume as
56.63 million shares in the sector exchanged hands over the week. The
Manufacturing sector and the Diversified sector meanwhile contributed
9.86% and 8.84% respectively to total market turnover volume.
The Finance Company (TFC) was the highest price gainer for the week,
increasing 44.26% to close the week at Rs 44.00 compared to last week’s
close of Rs 30.50. Samson International Plc gained 38.97% to close at Rs
99.50 while Softlogic Finance Plc closed the week at Rs 34.00,
representing a 23.64% increase. Nestle and CDIC too featured among the
top price gainers, increasing 21.45% and 18.27% respectively. The week’s
top price loser was PC Pharma which declined 18.67% to close the week at
Rs 12.20 from last week’s close of Rs 15.00. Huejay International
Investments Plc dropped 15.37% to close the week at Rs 90.30 while
Hayleys Exports declined 14.98% to Rs 26.10.
Foreign investors ended the week in a net buying position albeit a
69.85% decline from last week’s net buying position. Net foreign
purchases amounted to Rs 43.06 million relative to Rs 142.83 million
recorded last week, averaging Rs 8.61 million. Foreign purchases
declined 59.13% from Rs 750.27 million to Rs 306.60 million while
foreign sales declined 56.61% to Rs 263.54 million. Overseas’ Realty and
Commercial Bank led the week’s foreign purchases in terms of volume,
while Dialog and PC House led foreign sales. In terms of value, however,
Commercial Bank Voting and Non-voting led the list
Point of view
Currency speculation clouded market sentiment over the week, with
investors remaining on the sidelines waiting for some signs of stability
in the Sri Lankan Rupee which fluctuated sharply. The Sri Lankan Rupee
dropped to a new record low of Rs 133.6 (against the US $) mid-week as
concerns that the Rupee would depreciate still further if the Central
Bank stops supplying dollars for oil imports induced higher importer
dollar demand. Moral suasion by the Central Bank however, deterred
further sharp falls, and the Sri Lankan Rupee strengthened marginally
(2.2%) by end week. Market volumes nevertheless, remained thin, with
average turnover levels at Rs 0.3 billion and the highest recorded
volume at just Rs 0.8 billion. The net foreign position on the bourse
meanwhile – albeit declining - remained positive for the seventh
consecutive week. Similar market sentiments should prevail in the week
ahead.
Acuity Stockbrokers Research
|
