ASPI gains marginally

Markets remained mostly unchanged over the holiday-shortened week with the ASPI gaining a marginal 0.04% (or 2.42 points) W-o-W to close at 5878.19 points.

The S&P SL 20 Index increased 16.29 points and closed the week at 3190.65 points, up 0.51% from last week’s close.

Significant interest in Commercial Bank made it the largest contributor to this week’s turnover value.

The counter accounted for 31.85% of the market’s total turnover as it contributed LKR 1.54bn. Browns Investments made a contribution of LKR 734.41mn, accounting for 15.18% of total turnover value. Environmental Resources Investments meanwhile accounted for 14.93% (or LKR 722.42mn) of the week’s total turnover value.

Weekly turnover value meanwhile amounted to LKR 4.84bn, representing a 15.11% increase from last week’s turnover value of LKR 4.20bn. Daily average turnover value for the week amounted to LKR 1.21bn relative to LKR 1.05bn a week ago. Market capitalization meanwhile recorded a 1.01% W-o-W gain to LKR 2255.18bn compared to last week’s market capitalization of LKR 2232.71bn.

The Banking and Finance sector was the highest contributor to the week’s total turnover value, accounting for 49.05% (or LKR 2.37bn), with Commercial Bank accounting for a significant portion of the sector’s total contribution.

The second highest contributor to total market turnover stemmed from the Diversified sector which contributed 20.16% (or LKR 975.32mn).

This was followed by the Investment Trust sector which accounted for 15.78% (or LKR 763.24mn) of the week’s total turnover.

The Investment Trust sector was helped primarily by Browns Investment which accounted for 15.18% (or LKR 734.41mn) and Environmental Resources which contributed 14.93% (or LKR 722.42mn) to total market turnover value.

The Diversified sector dominated the market in terms of share volume, accounting for 57.73% (or 170.88mn shares) of the week’s total share volume. The Investment Trust sector followed as 50.27mn shares (or 16.99% of total share volume) were traded.

The Banking and Finance sector meanwhile contributed 14.06% to the week’s total turnover volume representing 41.62mn shares.

The highest price gainer for the week was Infrastructure Development with a W-o-W gain of 23.38% to close at LKR 200.00 compared to the last week’s close of LKR 162.10.

Environmental Resources gained 17.39% to close at LKR 18.90 while Miramar Beach Hotel gained 15.29% during the week to close at LKR 95.00. Finlays Colombo and Autodrome were also amongst the week’s top price gainers. Colombo Investment Trust was the highest price loser this week declining 19.31% W-o-W to close at LKR 132.50. Lanka Floor Tiles recorded a W-o-W price decline of 11.63% to close at LKR 60.00 while Arpico Finance closed at LKR 80.50, representing a 10.46% decline.

Foreign investors closed the week in a net selling position of LKR 0.93bn relative to last week’s net buying position of LKR 0.30bn, as daily average net outflows amounted to LKR 0.23bn compared to last week’s daily average net inflow of LKR 75.31mn.

Daily average foreign purchases amounted to LKR 0.33bn relative to LKR 0.50bn recorded last week (33.00% W-o-W decline), while daily average foreign sales amounted to LKR 0.57bn relative to last week’s average of LKR 0.42bn.

In terms of volume, LOLC and Sampath Bank led foreign purchases, while Environmental Resources and Commercial Bank led foreign sales.

In terms of value meanwhile, Sampath Bank and Nestle led foreign purchases while Commercial Bank and Environmental Resources led foreign sales.

Point of view

Markets lost some of last week’s momentum gaining 16.2 points over the week relative to last week’s 125.5 point increase. The ASPI nevertheless hit a 16-week high of 5883.66 points on Wednesday as large deals in Commercial Bank helped sustain volumes. Daily average volumes rose 9.1% over the week to LKR 1.2bn, helping maintain a Y-T-D average of LKR 1.0bn (2012 average: LKR0.9bn).

So far this year, the main Index has gained 3.4% relative to last year’s overall decline of 7.1%. Similar sentiment is likely to prevail in the week ahead

Money market liquidity surged significantly for the 2nd consecutive week with average overnight liquidity indicating a surplus of LKR 40.5bn (relative to LKR 43.9bn last week and LKR 5.6bn two weeks ago).

Rates were consequently lower, declining 17bps over the week to 10.41%. Interest rates have steadily trended down since January, losing 91 bps since December 2012 and 341 bps since its high of 13.82% in September 2012.

The LKR meanwhile depreciated 0.33% against the USD this week, closing at an average of 127.04 per USD compared to 126.62 last week.