Trade Summary Market - 09/01/2013

Source: Direct FN

WRITTEN BY THARANGA SENARATNE

Jan 09, 2013 (LBT) - Bourse extended its stagnant pace following hefty gains made during previous two weeks as the benchmark index closed broadly flat following marginal intra-day swings between gains and losses. The S&P SL20 also moved in tandem to close with a 3 point dip at 3,120.9 points. The day’s turnover weakened from yesterday to register LKR497.2 mn compared with an annual average of c.LKR1.2 bn.

The stagnation of indices is likely to sustain for few more trading days justified by the +200 points rally witnessed over the previous two trading weeks. We consider the current breather as a healthy sign, where the sentiments are likely to gather strength with the flow of 4Q2012 earnings numbers. However, the critical factor would be the contribution from local investors who are still to make a strong come back. We advise the value driven investors to identify and pick on the counters where real value lies, rather than buying the market. Strong renewed play in Dialog Axiata led the counter to record a series of large on-board deals as it saw a total of c.13.2 mn shares being traded during the day. The deals weighed more towards the selling side as the heavy index closed flat at LKR8.4. Following yesterday’s strategic deal in Asiri Central Hospitals, institutional interest extended in its related companies as Asiri Hospital Holdings and its subsidiary Asiri Surgical Hospitals registered a crossing each during the day’s trading. The former saw a block of 4 mn shares being dealt at its 52-week low (off-market) price of LKR11.4, whilst the latter recorded a parcel of c.2.7 mn shares taken at its 52-week high price (off-market) of LKR9.5.

Renewed interest was notable in CT Holdings as the counter saw several large trades on-board including 125k & 100k share parcels. Similar interest was witnessed in Softlogic Holdings as it closed flat at LKR11.5. Distilleries, Ceylon Tobacco, Lion Brewery continued to trade on their respective 52-week high prices, whilst another food & beverage sector player Ceylon Cold Stores renewed its 52-week high price at LKR134.7 today as it advanced 0.8% at its close of LKR134.0. Interest stayed in John Keells Holdings, Lanka Orix Leasing Company, Chevron Lubricants and Commercial Bank whilst retail & high net worth play was evident in Lanka IOC, ACL Cables and Touchwood.

European Stocks Advance on US Earnings Optimism: European stocks advanced as Alcoa Inc. began the US earnings season by posting sales that beat estimates and investors awaited German industrial-output data. US index futures and Asian shares also climbed. The Stoxx Europe 600 Index increased 0.4% to 287.44 at 8:23 a.m. in London. Oil Fluctuates on Signs US Crude, Fuel Stockpiles Increasing: Oil fluctuated in New York after an industry report showed rising stockpiles in the US, the world’s biggest crude-consuming nation. Crude for February delivery was at USD92.96 a barrel, down 19 cents, in electronic trading on the New York Mercantile Exchange at 4:01 p.m. Singapore time.
http://lbt.lk/stock-market/movement/3410-lbt-market-wednesday

Profit taking on many blue-chips during late trading caused the indices to lose marginally. The Relative Strength Index was at an overbought situation as at yesterday. However yields on treasury bills fell further in today’s auction which will help to improve the condition of the stock market.

Private deals on Asiri Hospitals and related parties transacted as well whilst a Dialog saw selling pressure towards the close of trading.

ASI dropped 6.83 points (0.12%) to close at 5,745.10 and the S & P SL20 index lost 3.10 points (0.10%) to close at 2,120.87. The turnover was Rs. 497.2Mn.

Top contributors to turnover were Dialog Axiata with Rs. 111.0Mn, Asiri Hospitals Holdings with Rs. 52.7Mn and Ceylon Theatres with Rs. 34.3Mn. Most active counters for the day were LOLC, Dialog Axiata and Laufgs Gas non-voting.

Notable gainers for the day were Odel up by 7.8% to close at Rs. 22.00, Laufgs Gas up by 3.4% to close at Rs. 27.80 and Distilleries up by 2.9% to close at Rs. 170.00. Notable losers for the day were Touchwood Investments down by 3.2% to close at Rs. 9.00, HVA Foods down by 2.2% to close at Rs. 13.30 and Nation Lanka finance down by 1.9% to close at Rs. 10.40.

Cash Map for today was 23.3% which was adversely impacted by the sell down in Dialog Axiata. Foreign participation was 31% of the market turnover whilst net foreign selling was Rs. 31Mn.