Trade Summary Market - 16/01/2013

Foriengers on the game.yesterday 365 trades today 448. highest in months.it was haging around 200-250 for months.

sahan8896 wrote:Foriengers on the game.yesterday 365 trades today 448. highest in months.it was haging around 200-250 for months.

I expect JKH to break Rs.230/- plus & COMB to break Rs.110/- in comming days.
After, other all stocks will follow the JKH & COMB.
Another Party time soon.

WRITTEN BY THARANGA SENARATNE

Jan 16, 2013 (LBT) - The bourse broke-off 7 days of stagnation during the day’s trading as the benchmark index followed a linear trend upwards as it crossed the 5,800 mark for the first time since October 2012. The index touched a high of 5,832.8 (+83 points), before closing the day with a 62.2 point advance at 5,812.5 points (the highest single day advance in 5 weeks) amidst notable across the board buying interest. The heavyweights, Sri Lanka Telecom, Ceylon Tobacco, Carsons Cumberbatch and Chevron Lubricants weighed on the index positively. The S&P SL20 also traded on a similar pattern yet securing a lesser 28.9 points gain to close at 3,163.2 points. The turnover was supported by large on-board deals in selected counters as it recorded LKR636.3 mn.

We welcome today’s market rally with fundamentally backed players being at the center stage amidst improved market sentiments across the board. Notably some re-activation of retailors were witnessed which we believe need further momentum for the bourse to sustain gains whilst supporting overall participatory levels. The continued drop in government yields has started to gradually reflect on equities which we expect to elevate further as the market interest rates would follow the declining trend over the short term, hence further enhancing the attractiveness of the equities. On the backdrop we expect the local retail investor participation to gather considerable momentum within next few months. Hence, we advise the value seekers to fasten up accumulation in the steady players with increased cash allocation as we expect the market to generate attractive returns particularly with the reversal of rising interest rate environment.

Heavyweight, John Keells Holdings, extended buying interest spearheading the day’s turnover as the counter recorded the day’s only crossing carrying 225k shares at LKR225.0. Several large deals were also drawn on-board in the counter including a 150k share block as it closed with a marginal price gain at LKR225.0. Substantial investor activity was notable in Softlogic Holdings as the counter recorded several on-board trades as it touched a high of LKR13.2, before closing at LKR13.0 with a staggering 11.1% advance. Ceylon Tobacco continued to renew its 52-week high price amidst buying interest touching LKR950.0 today where the counter closed with a 2.8% gain at LKR899.4. Buying interest was also notable in banking & finance sector counters; Hatton National Bank (-0.3%), Commercial Bank of Ceylon (+0.0%), People’s Leasing & Finance (+4.2%), Nations Trust Bank (+2.7%) and DFCC Bank (+1.3%). Further Chevron Lubricants and Asiri Hospital Holdings both renewed their 52-week high prices at LKR227.0 & LKR12.2 respectively. Large on-board deals continued in Dialog Axiata whilst Sri Lanka Telecom also grabbed considerable attention.

Europe Stocks Fall as World Bank Cuts Global Forecasts: European stocks declined for a fifth day as the World Bank downgraded global growth forecasts and Jean-Claude Juncker, who heads the euro group of finance ministers, said the strength of the euro currency threatens the region’s economy. US futures and Asian shares fell. The Stoxx 600 retreated 0.3% to 285.06 at 10:06 a.m. in London, for its longest losing streak since May. Oil Trades Near One-Week Low as US Crude Inventories Increase: Oil traded near the lowest level in almost a week in New York after US crude stockpiles increased and the World Bank cut its economic growth forecasts. Crude for February delivery was at USD93.22 a barrel, down 6 cents, in electronic trading on the New York Mercantile Exchange at 9:27 a.m. London time.
http://lbt.lk/stock-market/movement/3465-lbt-market-wednesday

Source: Direct FN

This isn't going to last. Banking is being bought up due to dividends and you can expect foreign buyers in JKH to exit once it hits their target PE ratios, last time this happened at 230. Fingers crossed, hoping for good dividends from the banking sector in the next month.