Markets rebounds with ASPI recording a rise
Markets rebounded this week with the ASPI recording a 2.25% rise (or
129.28 points) over the four-day week relative to last week's marginal
decline of 0.02% to close the week at 5875.77 points. The S&P SL 20
Index gained 1.29% (or 40.49 points) to close the week at 3174.36
points.
Commercial Bank contributed 23.19% to the week's total market
turnover value, making the stock the highest contributor to this week's
turnover value. The counter contributed Rs. 974.43 million while
Distilleries Company accounted for 15.93% (or Rs. 669.37 million) of
total market turnover value. JKH - which contributed Rs. 493.52 million
(or 11.74%) - was the third highest contributor to total market turnover
over the week. Despite the holiday-shortened trading week, total market
turnover value amounted to Rs. 4.20 billion, an increase of 10.73%
compared to last week's value of Rs. 3.80 billion. The daily average
turnover value for the week amounted to Rs. 1.05 billion, increasing
38.41% from last week's daily average of Rs. 759.12 million. Market
Capitalization meanwhile increased 1.17% (or Rs. 25.88 billion) to Rs.
2232.71 billion from last week's value of Rs. 2206.83 billion.
On a sectoral level, the Banking and Finance sector was the highest
contributor to the week's total market turnover value, accounting for
37.88% (or Rs 1.60 billion) of the market, helped primarily by
Commercial Bank (which accounted for 61.21% of the sector turnover). The
diversified sector trailed behind with a contribution of Rs. 930.82
million to account for 22.15% of total market turnover value. The
Beverage Food and Tobacco sector meanwhile was the third largest
contributor to the week's turnover value. The sector - backed mainly by
Distilleries Company accounted for 21.05% (Rs. 884.70 million) of total
market turnover.
In terms of share volume, the Banking and Finance sector was the
biggest contributor this week, accounting for 28.63% (or 37.38 million
shares) of the market's total trades for the week. The Diversified
sector contributed 18.85% of the total traded volume as 24.60 million
shares were traded while 18.93 million shares in the Telecom sector
changed hands, accounting for 14.5% of the week's turnover volume.
Equity Two was the highest price gainer for the week with a W-o-W gain
of 17.32% to close at Rs 29.80, compared to last week's close of Rs.
25.40. LMF gained 15.85% W-o-W to close at Rs. 125.00 while GS Finance
gained 14.55% W-o-W to close at Rs. 630.00. Samson International and CFI
were also amongst the top gainers for the week. The highest price loser
for the week was Miramar with a W-o-W decline of 12.90% to close at Rs.
82.40, relative to last week's close Rs. 94.60. Autodrome declined
10.99% W-o-W to close the week at Rs. 801.00, while Harischandra closed
at Rs. 2,424.80, representing a 10.03% decline over the week.
Foreign investors recorded a net buying position of Rs. 0.30 billion
relative to last week's net selling position of Rs 0.12 billion, as
daily average net inflows amounted to Rs. 75.31 million, relative to
last week's daily average net outflow of Rs. 23.17 million. Daily
average foreign purchases amounted to Rs. 0.50 billion relative to Rs.
0.35 billion recorded last week (41.96% W-o-W increase), while daily
average foreign sales amounted to Rs. 0.42 billion relative to last
week's average of Rs. 0.37 billion. In terms of volume, Distilleries and
Softlogic Holdings led foreign purchases, while Commercial Bank and
Dialog led foreign sales. In terms of value meanwhile, Distilleries and
JKH led foreign purchases while Commercial Bank and Dialog led foreign
sales.
Point of View
Markets regained traction this week with the ASPI recording
consecutive gains to close up 129.3 points W-o-W. Volumes hit a 7-week
high of Rs. 2.0 billion on Thursday with large block trades in selected
blue-chips (Distilleries, Commercial Bank and Aitken Spence) accounting
for 46.9% of total daily turnover. Consequently, daily average turnover
increased 38.4% (W-o-W) to Rs. 1.1 billion , pushing the Y-T-D average
up to Rs. One billion . Foreign investor activity too bounced back
significantly from last week's net selling position to record a weekly
net inflow of Rs. 0.3 billion . Positive momentum is likely to continue
in the week ahead amid continued buying interest by foreign and
institutional investors.
The Central Bank on Thursday reiterated its monetary policy stance,
retaining the policy rate changes adopted in early December (Repo
rate-7.50%; Reverse Repo-9.50%). The CB added that easing pressure on
inflation (9.2% Y-o-Y in December cf. 9.5% in November) and broad money
growth (18.2% Y-o-Y in November cf. to 20.6% Y-o-Y last year) justified
its current loose monetary policy stance. The Bank also added that
pressure on the trade deficit eased further in December and that the Sri
Lankan Rupee appreciated 5.3% against the USD during H2 2012. Meanwhile,
the World Bank projects Sri Lanka's 2013 GDP at 6.8% Y-o-Y while
estimating overall 2013 growth in the South Asian region at 5.7%. |