LSL - Weekly Market Review - W/E 07th Dec 2012

Improved investor sentiment on Colombo equities drove all the three market indices up during the week. ASI advanced by 36.15 points (+0.68%WoW) to close at 5,387.40 whereas MPI advanced by 24.79 points (+0.51%WoW) to close at 4,793.62. S&P SL 20 Index ended at 2,953.62, up 11.60 index points (+0.39%WoW). Average turnover improved marginally by 3.6%WoW to LKR 538.2mn and foreign participation for the week was 48.4% with a total net inflow of LKR 975.4mn, up 6.5% over the last week.

The Colombo stock exchange commenced operations for the week on Monday with broad market indices ending up on a negative note. Market turnover was LKR 173Mn. Benchmark All Shares Index (ASI) fell 13.54 points (-0.25%), sensitive Milanka Price Index (MPI) fell 27.74 index points (-0.57%) and S&P SL 20 Index declined by 10.62 points (-0.36%). Major contributor for the turnover was John Keells Holdings with LKR 24.7mn followed by Pan Asia Bank with LKR 20.8mn and DFCC Bank with LKR 12Mn. Foreign participation was 21% of the total turnover and foreign investors were net buyers with a net inflow of LKR 8mn.

Colombo shares closed proceedings on Tuesday on a flat note with mixed sentiments shown around in many counters. ASI dropped by 6.26 (0.12%) and the liquid MPI gained by 14.52 (0.30%) points. S&P SL20 Index gained by 0.77 (0.03%). Market turnover improved to LKR 505.5mn mainly due to the crossings on John Keells Holdings, Environmental Resources Warrants 0003 and 0006.John Keells Holdings (LKR 161.4mn), Environmental Resources Warrants 0003& 0006 (LKR 189.1mn) combined were the top contributors to the turnover followed by Chevron Lubricants (LKR 20.8mn) which continued to attract high investor interest, and Keells Hotels (LKR 11.1mn). Further Free Lanka Capital Holdings, Renuka Shaw Wallace Rights (voting), and Odel Rights were among the actively traded stocks during the day. Foreign participation was 58% and foreign investors were net buyers of LKR 156mn.

Bourse ended almost flat on Wednesday where benchmark indices closed in opposite direction. ASI dropped 8.24 points (-0.15%) and MPI gained marginally by 1.23 points (+0.03%) while S&P SL 20 Index dropped by 9.03 index points. Turnover level improved to LKR 871.0mn mainly due to the off-the-floor deals recorded by Aviva NDB Insurance, John Keells Holdings and Asiri Surgical Hospitals. John Keells Holdings topped the turnover list with LKR 61.7mn followed by National Development Bank (LKR 21.2mn) and Aitken Spence Hotel Holdings (LKR 14.8mn). Panasian Power, Renuka Shaw Wallace – Rights and Vallibel One were the heavily traded stocks during the day. Foreign participation accounted for 43% of the total turnover and foreign investors were net buyers with a net inflow of LKR 702mn.

Colombo stocks, coming off four consecutive trading sessions of losses, gained in value on Thursday. The benchmark ASI recovered 64.12 points (+1.20%), Sensitive MPI recovered 42.41 points (+0.87%) and S&P SL 20 Index gained 28.71 points (0.98%). Market turnover reached LKR 877.1mn supported by institutional activities in Nestle, John Keells Holdings, Distilleries, NDB and Environmental Resources Investments (warrants). Top contributor to the turnover was Distilleries (LKR 182.1mn) followed by National Development Bank (LKR 128.5mn) and Environmental Resources Investments – warrant 0006 (LKR 103.2mn). Central Investment & Finance, Peoples Leasing & Finance, HVA Foods and Swarnamahal Financial Services were the mostly traded stocks for the day. Foreign participation was relatively higher and it accounted for 66% of the total turnover. Foreign investors ended as net buyers with a net inflow of LKR 120.2mn.

Market wrapped the weekly operations on Friday on opposites. Benchmark ASI closed almost flat (gained 0.07index points) while MPI lost 5.63 index points (-0.11%) and S&P SL 20 Index gained 1.77 points (+0.06%). Market turnover was LKR 264.0mn. Off-the-floor deals were recorded from Citrus Leisure and Seylan Bank (non-voting) where the two counters brought out the highest turnover levels of LKR 89.5mn and LKR 47.1mn respectively and they were among the mostly traded stocks. Heavy retail investor interest was seen on People’s Lasing & Finance (LKR 20.8mn) during the day and it was the 3rd largest contributor to the turnover. Further, Citrus Leisure –warrants, Commercial Bank non-voting and HVA Foods were traded heavily. Foreign investor participation was lower at 6.9% and recorded a net outflow of LKR 11.0mn.

Bourse up slightly after mixed week
Stock Market Review for the week ending 07th December 2012:
December 9, 2012, 7:18 pm
The Island

Trading for the month of December got off to a slow start with both the indices closing lower owing to sharp drops in large cap stocks. The ASPI lost 13 points to close at 5,337, while the Milanka lost 27 points to close at 4,847. A turnover of only Rs 173 million was recorded for the day due to lack of strong buying sentiment. The largest contributors for the day was JKH with Rs 24 million followed by Pan Asia Bank contributing Rs 20 million and DFCC with Rs 12 million. The share price of JKH lost Rs 1.40 to close at Rs 207.10. Pan Asia Bank closed flat at Rs 18.00 while DFCC gained cents -/90 to close at Rs 109.00. A net foreign inflow of Rs 7 million was witnessed for the day.

On Tuesday the market closed on a mixed note with the ASPI losing 6 points to close at 5,331 while the Milanka gained 14 points to close at 4,855. A slightly modest turnover of Rs 505 million was recorded on the back of interest in JKH and Environmental Resource Investments warrants which collectively accounted for almost 65% of the day’s turnover. JKH led the top contributors list followed by ERI warrants 3 & 6 and Chevron. The share price of JKH gained Rs 1.90 to close at Rs 209.00. Environmental Resource Investments warrant 06 closed flat at Rs 4.00 while warrant 03 gained cents -/10 to close at Rs 3.70. Chevron gained Rs 16.00 to close at Rs 200.00. A net foreign inflow of Rs 156 million was recorded.

The market closed on a mixed note for the second consecutive day on Wednesday with the ASPI losing points to close at 5,323 while the Milanka gained a point to close at 4,856. An improved activity level of Rs 871 million was recorded on the back of institutional participation in Aviva NDB, JKH and Asiri Surgical, which collectively accounted for near 75% of market turnover. The share price of Aviva NDB lost Rs 19.00 to close at Rs 330.00 while JKH gained cents -/20 to close at Rs 209.30. Asiri Surgical gained cents -/50 to close at Rs 9.00. A net foreign inflow of Rs 701 million was recorded for the day.

On Thursday the market took a turn for the better and closed in the green mainly due to gains on large cap counters. The ASPI gained 64 points to close at 5,387 while the Milanka not to be outdone gained 42 points to close at 4,899. A market turnover of Rs 877 million was recorded on the back of continued local and foreign institutional participation in Distilleries, Nestle, JKH, which together contributed nearly half the day’s turnover. The top contributors list was headed by Distilleries followed by NDB, Environmental Resource Investments warrants 6 & 3, and Nestle. The share price of Distilleries gained Rs 1.00 to close at Rs 151.00 while NDB gained Rs 2.90 to close at Rs 133.90. ERI warrant 6 and 4 gained by -/20 and -/10 to close at Rs 4.10 and Rs.3.60 respectively. Meanwhile Nestle gained Rs 104.50 to close at Rs 1399.00. A net foreign inflow of Rs 120 million was witnessed during the day.

On the last day of the week the market closed on a mixed note with the ASPI closing higher by a fraction to close at 5,387 while the Milanka lost 5 points to close at 4,893. Activity levels dropped to record only Rs 263 million with block trades in Citrus Leisure and Seylan Bank (non-voting) helping to boost turnover. The top contributors list was headed by Citrus Leisure achieving a turnover of Rs 89 million followed by Seylan Bank (non-voting) with Rs 47 million and Peoples Leasing & Finance with Rs 20 million. The share price of Citrus Leisure gained cents -/60 to close at Rs 25.10 while Seylan Bank (non-voting) closed flat at Rs 35.00. Peoples Leasing gained cents -/50 to close at Rs 13.30.

(Courtesy: Innovest Investments (Pvt) Ltd – an Investment Management Company licensed by the Securities & Exchange Commission of Sri Lanka)