Upward market trend continues
The market continued last week’s upward momentum with all three
indices closing with week-on-week (W-o-W) gains. The ASPI gained 1.74%
(85.71 points) over the week to close at 5012.84 points. The MPI
meanwhile, increased 86.51 points (or 1.90%) to close at 4636.53 points,
while the S&P SL 20 index gained 1.31% (or 36.46 points) to close the
week at 2828.54 points.
The highest contributor to the week’s turnover value was Asiri
Hospitals Holdings which accounted for 16.14% (or LKR 615.61mn) of the
market’s total turnover. Asiri Central followed closely, contributing
15.86% or LKR 604.69mn while JKH accounted for LKR 487.53mn or 12.78% of
total market turnover. Total turnover for the week amounted to LKR
3.81bn, up 76.46% from last week’s value of LKR 2.16bn. The daily
average turnover value amounted to LKR 762.75mn in comparison to last
week’s average of LKR 432.26mn. Market Capitalization too increased
1.74% to LKR 1916.83bn from last week’s value of LKR 1884.06bn.
On a sectoral level, the Health Care sector – helped by Asiri
Hospitals Holdings and Asiri Central Hospital - dominated the week’s
turnover value accounting for 32.31% or LKR 1.23bn of total turnover
value.
The Diversified Sector made a contribution of LKR 772.58mn or 20.26%
to market turnover value while the Banking and Finance sector accounted
for 15.51% (or LKR 591.61mn). In terms of volume, the Health-Care sector
accounted for 41.54% (or 85.52mn shares) of the market’s total trades
for the week.
The Diversified sector contributed 14.41% of the total traded volume
with 29.66mn share transactions while 26.62mn shares in the Banking and
Finance sector changed hands, accounting for 12.93% of this week’s total
turnover value.
Printcare was the highest price gainer for the week gaining 34.68%
W-o-W to close at LKR 29.90 (compared to last week’s LKR 22.20). Paragon
Ceylon closed the week at LKR 1400.00, a W-o-W gain of 33.33% while
Selinsing gained 29.65% to close the week at LKR 1102.00. Colombo Fort
Investments and Hydro Power Free Lanka were also amongst the top price
gainers for the week, gaining 29.27% and 26.92%, respectively.
Infrastructure Developers PLC led the price losers’ list, declining
25.00% over the week to close at LKR 118.50 compared to last week’s
close of LKR 158.00. Asiri Central closed down 17.99% at LKR 205.20
while E B Creasy lost 9.59% over the week to close at LKR 904.10.
Point of View
Market’s hit a psychological high this week as renewed investor
interest pushed the ASPI over 5000 points for the first time in two
months.
Volumes which were primarily driven by foreign buying, pushed average
turnover levels to LKR 0.8bn relative to the year-to-date daily average
of LKR 0.9bn. Foreign investor participation continued to dominate
market activity with net foreign inflows gaining 65.0% week-on-week,
following deals in Asiri Central Hospitals PLC by private equity
investor Actis Investment Holdings SL Ltd. Similar sentiment is likely
in the week ahead. Macro-economic indicators too were positive this
week, with the country’s trade deficit hitting a 16-month low in June.
According to official data, the trade deficit declined 33.4% since
January 2012 as a 25.9% decline in import expenditure helped offset a
17.8% decline in export income. Inflows into the services account too
have been strong with earnings from tourism increasing 24.3% Y-o-Y in H1
2012 and worker’s remittances rising 17.4% Y-o-Y.
Inflows into the capital and financial account meanwhile have been
positive amid increases in FDIs,
inflows into the CSE and inflows to both government securities and
commercial banks. The LKR meanwhile remained stable against the USD at
Rs 132.35. |
