The Bourse Weekly Performance (Week ended May 02, 2014)

[SrirangaVeteran]

LSS Weekly Market Focus

Colombo equities started weekly operations on a positive note where both indices witnessed marginal returns. ASI gained 4.13 index points or 0.07% to close at 6,171.94 while 20-scrip S&P SL index gained 6.37 index points to close at 3,394.34. Price appreciations in Vallibel One (closed at 18.30, +2.8%), Asian Hotels and Properties (closed at LKR 64.50, +1.6%) and CT Holdings (closed at LKR 140.00, +2.2%) contributed positively to the index performance. Daily market turnover was LKR 424mn. Commercial Bank topped the turnover list with LKR 37mn followed by John Keells Holdings (LKR 34mn) and George Steuart Finance (LKR 32mn) respectively. Heavy investor participation was seen in counters such as George Steuart Finance, Union Bank and Lankem Ceylon. Foreign participation was 24%. Foreign investors were net buyers with net inflow of LKR 52mn. Meanwhile, John Keells Holdings made an announcement stating that the Waterfront project site has been handed over to contractor and the construction has commenced consequent to the parliament approval of gazette under strategic development project. Further, Mr.Vajira Kulathilake has been appointed as the Chairman of the Board of Directors of the CSE, with effect from 5th June 2014. Mr. Krishan Balendra, will step down as the Chairman, on the conclusion of the customary three year term.

Colombo bourse closed higher on Tuesday as benchmark All-share index gained 14.31 index points or 0.23% to close at 6,186.25 and S&P SL 20 index gained 10.98 index points or 0.32% to close at 3,405.32. Progression in counters such as John Keells Holdings (closed at 238.00, +1.3%), Commercial Leasing & Finance (closed at LKR 4.00, +5.7%), Sri Lanka Telecom (closed at LKR 48.90, +1.5%) and Expolanka (closed at LKR 10.10, +6.3%) contributed favorably to the index performance. Daily market turnover was LKR 571mn. Top contributions to the market turnover came from Union Bank (LKR 66mn), Expolanka (LKR 45mn) and Aitken Spence (LKR 42mn) respectively. Moreover Union Bank, The Finance Company non-voting, George Steuart Finance attracted heavy investor interest during the trading session. Meanwhile in T-bill auction, 12-month yield remained unchanged (7.02%) while 6-month yield declined by 1bps to 6.78%. There were no sales for 3-month T-bills in the auction. Foreign investors were net buyers with net inflow of LKR 48mn. Foreign participation was 23%.

Equity market managed to retain the positive momentum as both indices closed with high returns. Benchmark all share price index gained 37.42 points (+0.6%) to end at 6,223.67 while S&P SL 20 index gained 12.87 points (+0.38%) to close at 3,418.19. Price improvements in counters such as Ceylon Tobacco (closed at LKR 1,100.00, +3.3%), Lion Brewery (closed at LKR 434.00, +7.1%) and Ceylinco Insurance (closed at LKR 1,360.00, +7%) contributed positively to the index performance. Daily market turnover recorded a 3-week high of LKR 1.2bn while the share volume recorded a 4-week high of 53mn. John Keells Holdings the topped the turnover list (LKR 179mn) underpinned by negotiated transactions of 0.48mn shares at LKR 238.00 per shares. Aitken Spence (LKR 176mn) and Union Bank (LKR 70mn) recorded next best contributions to the market turnover. Further, another crossing was recorded in First Capital Holdings where 3mn shares changed hands at LKR 22.00 per share. Meanwhile, George Steuart Finance continued to attract heavy investor interest during trading session followed by Laxapana Batteries, Union Bank and The Finance non-voting. Foreign investors were net sellers with a net outflow of LKR 55mn. Foreign participation was 28%.

Colombo stock market closed its weekly operations with notable gains in both indices. Main share index gained 24.77 index points or 0.40% to close at 6,248.44 and S&P SL 20 index gained 17.62 index points to close at 3,435.81. Price appreciations in stocks such as Carson Cumberbatch (closed at LKR 405.00, +8.0%), Ceylon Tobacco Company (closed at LKR 1,110.00, +1.0) and Vallibel One (closed at LKR 20.00, +4.7%) contributed favorably to the index performance.
Daily market turnover was LKR 1.3bn. Expolanka topped the turnover list with LKR 217mn followed by Royal Ceramic (LKR 151mn) with a single crossing of 0.2mn shares at LKR 104.90 and Aitken Spence (LKR 116mn). Additional crossing were recorded in Watawala Plantations with 4.5mn shares at LKR 11.50.

Moreover, George Steuart Finance, Expolanka and Softlogic Holdings attracted heavy investor interest during the day. Gainers outweighed the losers 149 to 70, while 63 equities remained unchanged. Cash map improved to 66% from 54%. 12 counters reached 52wk high price levels and 2 counters touched 52wk low prices.

Foreign participation was 17% of the market activity, where foreign investors were net sellers with a net foreign outflow of LKR 217mn. Net foreign outflows were mainly seen in counters such as Aitken Spence (LKR 115mn), Chevron Lubricants (LKR 67mn), Watawala Plantations (LKR 54mn) while inflow was mainly seen in Commercial Bank (LKR 20mn).
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[SrirangaVeteran]

http://www.sundayobserver.lk/2014/05/04/fin53.asp

[Ethical TraderTop contributor]

Thanks Red. A run in the banking sector owing to intended consolidation of financial sector while foreigners generally selling more than they bought. ?Can any one post areas where foreigners are leaving and entering.

[NuinthTop contributor]

Thx RED for update.

As ET said, It may be very important for concern "Which areas foreigners are leaving and entering". As above report most of them are focusing banking & finance sector. I guess from 03rd-04th quarter banks & finance shares will lead the market.

Further according to the report/ I also noticed that rupee has lost its ground heavily.