Trade Summary Market - 09/11/2012

Nov 09, 2012 (LBT) - The Colombo bourse remained on a positive trajectory throughout the week to close in green, edging up marginally. The All Share Index gained 57.1 points WoW to close at 5,589.43 points (1.0%), whilst the Milanka Price Index gained 81.6 points WoW to close at 5,152.98 points (1.6%). Indices benefited mainly on the back of the price gains in George Steuart Finance (22.5% WoW), John Keells Holdings (1.4% WoW), Asian Hotels & Properties (5.0% WoW), Cargills Ceylon (5.1% WoW) and Dialog Axiata (2.4% WoW).

The bourse started the week with expectations accumulating on budget 2013 along with the quarterly corporate earnings. Hence, the market observed positive sentiments spreading across the board, pushing up the indices which is relatively commendable compared to the performance of the past couple of weeks. The market reacted positively to the budget, which has given several concessions to the capital market in line with the objective of ‘the capital market development master plan’. The proposed concessions such as 50% tax exemption for three years on newly listedcompanies with a free float of 20%, exemption of withholding tax on interest income of corporate bonds and debentures listed in the CSE, corporate tax on unit trust management services reduced from 28% to 10% and exemption on stamp duty on the transfer of stocks by any persons to a margin trading account and vice versa, are an attempt to increase the investors participation in the capital market.

Further, corporate earnings released so far have portrayed a commendable performance for this quarter amidst the undesirable movements of macroeconomic factors. However, the export oriented companies are likely to face a slowdown in growth due to the crisis in West and particularly the apparel sector export revenue is expected to come down by 8-10% by end of 2012.

During the week, institutional and foreign interest was centred primarily on John Keells Holdings, Environmental Resources Investments and Chevron Lubricants. As a result, John Keells Holdings topped the turnover list witnessing two crossings totalling 426,492 shares at LKR 215.0. Environmental Resources Investments shares saw a crossing of 23,152,671 shares changing hands at LKR 16.40, whilst Warrants 006 and Warrants 003 too witnessed a crossing of 23,152,671 each, changing hands at LKR 5.20 and LKR 4.90 respectively. Subsequent to crossings,Environmental Resources Investments shares, Warrants 006 and Warrants 003 have secured places in the top turnover contributor list. Chevron Lubricants saw over 1.3 mn shares changing hands at an average price of LKR 203.41, emerging to be amongst the top contributors. In addition, DFCC Bank, Asiri Hospital Holdings, Hatton National Bank (Non-Voting), and Commercial Bank (Non- Voting) witnessed crossing during the course of the week. Moreover, main sector indices such as Banking Finance & Insurance gained 1.4%, Beverage Food & Tobacco gained 0.7%, whilst Diversified sector gained 1.4% for the week.

Furthermore, Environmental Resources Investments share, Environmental Resources Investments Warrants 003, Environmental Resources Investments Warrants 006, Asiri Hospital Holdings and Panasian Power topped the list in terms of volume traded during the week. The average daily turnover for the week was LKR 433.6mn whilst the average daily volume was 25.9mn shares.

The week saw foreign purchases amounting to LKR 1,294.9mn whilst foreign sales amounted to LKR 779.7mn. Market capitalisation stood at LKR 2,141.21bn, and the YTD performance is -8%.Sri Lanka Focus 09th November 2012.
http://lbt.lk/stock-market/movement/2934-lbt--market-friday

Post-budget trading on Colombo bourse:

The first post budget session of the Colombo bourse yesterday saw turnover nudging the billion rupee mark and all three indices moving up moderately with the Milanka Price Index doing best, brokers said.

Turnover at Rs.986.03 million was up from the previous day’s Rs.539.2 million, while the All Share Price Index moved up 8.59 points (0.15%), the Milanka 25.02 points (0.49%) and S&P 12.44 points (0.41%) with 114 gainers leading 88 losers while 109 counters closed flat.

Most of yesterday’s turnover came off ordinary shares and warrants of Environmental Resource Investments and JKH with ERI generating Rs.613.5 million in crossings while JKH generated Rs.91.7 million in two block trades of over 0.4 million shares at Rs.215.

Brokers and analysts noted that ERI sold 23.15 million ordinary shares and the identical quantities of warrants (0003 and 0006) at Rs.4.90 and Rs.5.20 respectively in block trades.

Noting that several such trades had been concluded in recent days they said that the controlling shareholder, foreign based Lionheart, was selling down.

Apart from the crossings, JKH was the major business generator on the floor with over 0.3 million shares traded between Rs.214 and Rs.215.10 closing Rs.1.10 up at Rs.214.90 contributing Rs.69 million to turnover.

Brokers said that there were some large parcels among JKH shares traded while ERI trades on the floor of nearly 2.1 million ordinary shares done between Rs.16.30 and Rs.17 closing 60 cents up at Rs.16.90, were in much smaller parcels. The ERI floor trades were worth Rs.34.7 million.

NDB continued to attract interest closing Rs.1.20 up at Rs.139.40 on over 0.1 million shares done between Rs.136.50 and Rs.139.40 contributing Rs.18.7 million to turnover.

There has been recent interest in Balangoda with 0.5 million shares traded yesterday closing Rs.1.40 down at Rs.37.70 contributing Rs.18.6 million to turnover. Brokers noted that some large quantities of this plantation stock had been traded in recent days.

Retail participation continued to remain disappointing, brokers said.
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