CSE rebounds with fresh interests in blue chips and speculative stocks

Sept 12, 2012 (LBO) - Sri Lanka closed up 1.38 percent in a day that a commodity broker and a finance company started trading for the first time, brokers said.

The Colombo All Share Price Index close up 77.4 points at 5,668.30 and the S&P SL20 Index closed up 1.29 percent at 3,073.2 points up 1.29 percent.

Turnover was 1,207 million rupees.

Debutant Asia Siyake Commodities closed at 7.90 rupees, after moving as high as 22.00 rupees in intra-day trading, up 395 percent from its indicative pricing.

George Steuart Finance closed at 2131.70 after trading as high as 220 rupees, up 968 percent from its indicative price.

Index heavy John Keells Holdings closed up 5.40 at 208.40 rupees and Sri Lanka Telecom closed up 2.50 at 47.20 rupees, contributing most to the index, according to stock exchange data.

Selinsing, an illiquid stock which rose 500 rupees with a single share being traded on Tuesday fell back 209 rupees to 1,390.

Some poultry stocks which had made steep gains in recent days also dropped on profit taking. Bairaha Farms fell 8.40 rupees to 176.40, Three Acre Farms fell 1.30 to 73.20 and Ceylon Grain Elevators fell 1.0 rupee to 74.10.
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Sri Lanka's stocks closed up Wednesday amidst profit realization behavior and slowing down of retailers’ aggressive buying sentiment , analysts said.

The Colombo All Shared Index closed at 5,668.30 up 77.40 points (1.38 percent) and the S & P SL 20 index closed at 3,073.26 up 39.26 points (1.29 percent). Milanka Price Index gained 88.82 points (1.70 percent) to close at 5308.54.

Turnover was Rs. 1.2 billion with share volume of 62.93 million.

The Market ended the day by entering into positive territories despite the reduction on average daily turnover. Retailers’ aggressive buying sentiment was slowed at the first phase and profit realization behavior was observed amongst the investors, a stock broker said.

Simultaneously indices were so volatile on early hours in between negative region to positive region. But towards the latter hours, market demonstrated vast recovery and indices and stock prices began to appreciate dramatically, he added.

John Keells Holdings PLC (Rs. 150.5million ), Environmental Resources PLC (Rs. 83.3million ) and East West Properties PLC (Rs 63.5million) led the top contributors to the daily turnover list. SMB Leasing PLC (6.2 million), Environmental Resources PLC (4.7million) and Ceylon Tea Brokers PLC (4.2million ) were the top traded counters for the day. The price gainers were led by George Steuart Finance Limited on the contrary Serendib Land PLC led the price losers. The market recorded a net foreign inflow of Rs. 104.4 million. (Bandula)
-Ends
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By The Nation

Indices edged to negative territory in the morning but recovered during the latter part of the trading session supported by improved interest on index heavy blue chip counters. Newly listed George Steuart Finance and Asia Siyaka Commodities recorded unprecedented gains owing to lack of selling quantities.

Meanwhile, yields on treasury bills at all three maturities remained unchanged comparative to last week auction. ASI gained 77.40 points (1.38%) to close at 5,668.30, MPI gained 88.82 points (1.70%) to close at 5,308.54 and the S&P index gained by 39.26 points (1.29%) to close at 3073.26. Turnover stood at Rs. 1.2Bn. Top contributors to turnover were John Keells Holdings with Rs. 150.5Mn, Environmental Resources Holdings with Rs. 83.4Mn and East West Properties with Rs. 63.5Mn.

Most actively traded counters for the day were East West Properties, Dankotuwa Porcelain & Environmental Resources Holdings. Noteworthy gainers for the day were George Steuart Finance up by 1000.0% to close at Rs. 220.0, Asia Siyaka Commodities up by 375.0% to close at Rs. 9.5 and Laugfs Gas – Non Voting up by 20.2% to close at Rs. 21.4. Meanwhile notable losers for the day were Serendib Land down by 30.5% to close at Rs. 1,999.0, Ceylon Brewery down by 17.9% to close at Rs. 316.0 and Selinsing down by 13.1% to close at Rs.1,390.00. Cash map for the day was 59.53%.Foreign participation for today was 10.21% of total market turnover and foreigners were net buyers of Rs. 104.5Mn.
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All three indices up, turnover Rs. 1.2 bn.

The Colombo bourse yesterday resumed its upward zoom following Tuesday’s short breather with turnover hitting Rs.1.2 billion, down from the previous day’s Rs.1.99 billion, with all three indices moving up tidily – the All Share by 77.40 points (1.38%), the Milanka by 88.82 points (1.70%) and S&P by 39.26 points (1.29%) with 156 gainers outpacing 86 losers while 66 counters closed flat.

Brokers said that sentiment was very positive with a number of blue chips led by JKH moving sharply. They were optimistic that the present momentum would take the market up by a further before it takes another breather.

There was just one block trade yesterday of 200,000 Sampath done at Rs.205 in a deal worth Rs.41 million.

JKH closed Rs.6.90 up at Rs.209.90 on over 0.7 million shares done between Rs.200.10 and Rs.210 generating the day’s top turnover of Rs.150.5 million.

Two newly listed counters, Asia Siyaka and George Steuarts Finance opened trading yesterday with the former closing at Rs. 7.90 after hitting a high of Rs. 22 in intraday trading – up nearly four times its indicative pricing.

George Steuarts closed at Rs. 193.70 with the share peaking at Rs. 220, over nine times its indicative pricing.

ERI was second on the turnover league closing flat at Rs.l17 on nearly 4.8 million shares done between Rs.17 and Rs.17.80. East West was next closing Rs.1.10 up at Rs.20.30 on nearly 3 million shares done between Rs.20.20 and Rs.22.30.

Yesterday’s major turnover generators were JKH, ERI, East West, Dankotuwa and Laugfs both voting and non-voting.

Among the blue chips, the National Development Bank was the only other stock other than JKH in the most traded list closing Rs.2.10 up at Rs.125 on nearly 0.3 million shares done between Rs.122 and Rs.125.50.

Some poultry stocks which had made steep gains in recent days also dropped on profit taking, brokers said. Bairaha Farms fell 8.40 rupees to 176.40, Three Acre Farms fell 1.30 to 73.20 and Ceylon Grain Elevators fell a rupee to 74.10.
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The Colombo Bourse bounced back sharply yesterday, energised by a fresh round of buying interest in both blue chips as well as second tier stocks.

The manner in which the Colombo Stock Exchange has been behaving of late – continuous foreign and institutional buying on blue chips and active play by retailers on low-value stocks with high net worth investors looking for selective counters – has been welcomed by most analysts and brokers. Those who are sceptical, however, continue to issue caution.

Be that as it may, the ASI gained by 1.4% or 77 points, the MPI by 1.7% or 89 points and the S&P SL 20 Index by 1.3% or 39 points yesterday. As per Bloomberg data, during the month ended on 10 September, the Colombo Bourse was up 14.85%, placing the CSE as the third best performer, whilst the MSE Top 20 Index was down 10.84%. However, the ASI remains negative at 6.6%, but a massive improvement when compared with 20% dip by mid-July

Turnover yesterday was Rs. 1.2 billion, whilst 63 million shares were traded.

The top turnover generators were John Keells Holdings PLC (JKH), Environmental Resources Investments PLC (GREG), East West Properties PLC (EAST), Sampath Bank PLC (SAMP) and Dankotuwa Porcelain PLC (DPL).
NDB Stockbrokers said profit taking was witnessed to an extent in retail counters, while speculative counters such as Environmental Resources Investments, East West Properties and Dankotuwa Porcelain were seen dominating the turnover till mid day.

“Commercial Bank and John Keells Holdings kept the indices in the green, with the latter gradually accelerating to hit an intraday high of Rs. 210 to emerge as the highest contributor for the day,” it added.
“Buying interest re-emerged in the Colombo Bourse after a slow start followed by Tuesday’s downturn.

Volatility remained high in the first hour as the Bourse dipped 10 points, before investors rushed in to take advantage of the bargain prices. A significant uptrend followed thereafter,” Softlogic Stockbrokers said.
NDBS said the Banking, Finance and Insurance sector was the top contributor to market turnover (Sampath Bank) and the sector index gained 2.28%. The share price of Sampath Bank gained Rs. 1 (0.49%) to close at Rs. 206.

The Diversified sector became the second highest contributor to the market turnover (John Keells Holdings) and the sector index surged 1.75%. The share price of John Keells Holdings accelerated by Rs. 6.90 (3.40%) to close at Rs. 209.90.

Environmental Resources, East West Properties and Dankotuwa Porcelain were also among the top contributors for the day. The share price of Environmental Resources closed flat at Rs. 17, while the share price of East West Properties gained Rs. 1.10 (5.73%) to close at Rs. 20.30. The share price of Dankotuwa Porcelain lost Rs. 0.70 (2.90%) to close at Rs. 23.40.

With Tuesday’s dip, Softlogic said it was evident how easily the speculative counters could lose ground while blue-chip counters held their ground amidst the profit taking, which gave a breather to the upsurge. “Therefore we continue to advice our investors to pick value counters which are in still abundance and are likely to safeguard the capital of the investor,” it added.

DNH Financial said: “We view the current market levels as an attractive entry point for both foreign and domestic investors seeking healthy returns in the medium to longer term. With the price of relatively lower quality companies having risen to considerably high levels during the 2009/2010 bull run, an opportunity to invest in companies of superior fundamental value now exists with significant upside potential of reversing relative underperformance.”

“As we head deeper into the third quarter of 2012, we expect the market to continue to gain momentum even though intermittent bouts of profit taking could slow the ascent. However, even within the quality company segment, we advise investors to be selective by investing in companies that have low debt/equity structures and relatively lower energy consumption needs,” DNH added.
http://www.ft.lk/2012/09/13/cse-rebounds-with-fresh-interests-in-blue-chips-and-speculative-stocks/