Foreigners lift bourse, net inflow Rs. 1.5bn

Market opened on a positive note on Monday but the main index dropped after mid-day on retail selling. It’s assumed as a result of retail investors taking a cue from recent upward pressure on interest rates. News of Cargills/CT Holdings securing IFC backing for their bank failed to show a marked gain on their prices. ASI dropped 14.08 points (0.25%) and the S&P SL20 index gained 6.45 points (0.20%). Turnover was Rs. 557.0Mn.

On Tuesday, indices gained on the back of improved buying activity on blue-chips such as John Keells Holdings, Commercial Bank and Ceylon Tobacco Company. National Development Bank rose by around Rs. 3.00 on relatively thin volumes as investors expect a lump sum final dividend. Foreign buying on blue-chips has driven the market from last year’s low levels and we expect this trend to continue in the mid-term. ASI gained 27.01 points (0.48%) and the S&P SL20 index gained 17.90 points (0.55%). Turnover was Rs. 671.6Mn.

Retail selling prevailed on Wednesday although few blue-chips sought by foreigners gained marginally. John Keells Holdings and National Development Bank reached their 52-week highs of Rs. 239.00 and Rs. 157.00. Ceylon Tobacco Company saw another lackluster day with buying interest slowing. Yields on all treasuries rose by 5 basis points each which further illustrate the negative footing of retailers. ASI lost 18.50 points (0.32%) and the S&P SL20 index lost 11.85 points (0.36%). Turnover was Rs. 447.0Mn.

A late surge in blue-chips helped to recover from mid-day losses on Thursday. John Keells Holdings and National Development Bank continued to improve their 52-week highs to Rs. 239.00 and Rs. 158.50 respectively. Few blue-chips are trading beyond their intrinsic values therefore we advise investors not to get into the herd instinct but stick to value investing. ASI gained 3.16 points (0.06%) and the S&P SL20 index gained 5.79 points (0.18%). Turnover was Rs. 609.2Mn.

Indices closed higher on Friday driven by gains on foreign-favourite blue-chips such as John Keells Holdings, Ceylon Tobacco Company and Commercial Bank. Meanwhile National Development Bank continued to rise on speculation of a large final dividend. However, retail counters seem to be losing interest amongst investors who seem to be looking for steady returns with blue-chips. ASI gained 15.55 points (0.27%) to close at 5,704.53 and the S&P SL20 index gained 21.41 points (0.66%) to close at 3,262.44. Turnover was Rs. 729.9Mn.

Top contributors to turnover were John Keells Holdings with Rs. 269.3Mn, Bukit Darah with Rs. 97.5Mn and National Development bank with Rs. 87.0Mn. Most active counters for the day were PC House which announced a 1:2 rights issue at Rs. 3.00, National Development Bank and John Keells Holdings.

Notable gainers for the day were Citrus Leisure warrant-19 up by 8.3% to close at Rs. 2.60, Ceylon tea Brokers up by 4.1% to close at Rs. 5.10 and Kelani Tyres up by 3.0% to close at Rs. 33.90. Notable losers for the day were PC House down by 12.6% to close at Rs. 3.20, Panasian Power down by 3.7% to close at Rs. 2.60 and Nawaloka down by 3.3% to close at Rs. 2.90.

Cash map for today was 57.53%. Foreign participation was 25.74% of total market turnover whilst net foreign buying was Rs. 335.5Mn.

* Stock Market Review for the week ending 15th March 2013:

During the week the ASI gained 13 points to close at 5,705 while the S&P SL20 gained 40 points to close at 3,262. The daily average turnover was Rs. 602Mn compared to Rs. 1,349Mn recorded during the previous week. The week also recorded a foreign inflow of Rs. 1.5Bn against foreign outflow of Rs. 465Mn leading up to a net foreign inflow of Rs. 1Bn. The market was driven by foreign buying in blue chip counters while retail participation remaining subdued. John Keells Holdings was the pick of the day with the counter being the top traded counter for 5 straight sessions.

Trading for the week started off on a positive note but the main index failed to sustain the upward momentum as retail selling dragged down the ASI. The ASI lost 14 points while the S&P SL20 gained 6 points. A modest turnover of Rs. 557Mn was recorded boosted by private deals witnessed in John Keells Holdings, Commercial Bank and Hatton National Bank. John Keells Holdings was the top contributor with Rs. 135Mn followed by Commercial Bank with Rs. 103Mn and Hatton National Bank with Rs. 52Mn. The share price of John Keells Holdings gained Rs. 1.70 to close at Rs, 234.70 while Commercial Bank gained Rs. 0.50 to close at Rs. 108.40. Hatton National Bank closed lower by Rs. 0.10 at Rs. 155.00. A net foreign inflow of Rs. 45Mn was recorded with foreign buying witnessed in John Keells Holdings and NDB Bank while selling was witnessed in Commercial Bank.

The indices recovered on Tuesday to a more than two week high on the back of improved buying activity on blue-chips. The ASI rose 27 points while the S&P SL20 rose by 18 points. A turnover of Rs. 671Mn was recorded on the back of a private deal in John Keells Holdings. The investor favorite counter was the top contributor for the day with Rs. 348Mn while Commercial Bank and Hatton National Bank (non-voting) contributed Rs. 57Mn and Rs. 27Mn respectively. The share price of John Keells Holdings gained Rs. 2.80 to close at Rs. 237.50 while Commercial Bank gained Rs. 1.60 to close at Rs. 110.00. The non-voting share of Hatton National Bank edged up Rs. 0.30 to close at Rs. 125.90. Foreign buying was evident in John Keells Holdings leading to a net inflow of Rs. 321Mn.

On Wednesday, retail selling brought down the indices with both the ASI and S&P SL20 closing lower by 19 and 12 points respectively. A low turnover of Rs. 447Mn was recorded boosted by private deals in blue chip counters such as John Keells Holdings, Hatton National Bank and Commercial Bank collectively amounting to around 55% of the day’s turnover. John Keells Holdings headed top contributors list with Rs. 104Mn. The other top contributors were Hatton National Bank with Rs. 81Mn and Commercial Bank with Rs. 64Mn. The share price of John Keells Holdings gained Rs. 1.50 to close at Rs. 239.00 while Hatton National Bank gained Rs. 0.20 to close at Rs. 155.20. Commercial Bank edged up Rs. 0.30 to close at Rs. 110.30. Commercial Bank attracted foreign buying while sales was witnessed in Hatton National Bank leading to a net inflow of Rs. 64Mn.

Thursday witnessed the market closing higher on marginal gains on both indices. The ASI and the S&P SL20 gained 3 points and 6 points respectively. A slightly improved turnover of Rs. 609Mn was recorded on the back of continued foreign buying in blue-chip counters. John Keells Holdings remained as the top turnover contributor for the 4th straight session with Rs. 169Mn. The other top contributors were Sampath Bank with Rs. 106Mn and Odel with Rs. 46Mn. The share price of John Keells Holdings gained Rs. 1.90 to close at Rs. 239.00 while Sampath Bank and Odel closed flat at Rs. 234.00 and Rs. 23.00 respectively. Foreign buying was evident in Sampath, John Keells Holdings, Odel and LOLC while sales were recorded in DFCC Bank leading up to a net foreign inflow of Rs. 261Mn.

On Friday the market closed higher with continued buying activity on blue-chips. The ASI gained 16 points and the S&P SL20 gained 21 points. A market turnover of Rs. 729Mn was recorded boosted by private deals witnessed in John Keells Holdings, Odel and Bukit Darrah counters. Once again John Keells Holdings was the top traded counter generating Rs. 268Mn in turnover. The other top traded counters were Bukit Darrah with Rs. 97Mn and NDB Bank with Rs. 87Mn. The share price of John Keells Holdings gained Rs. 1.40 to close at a 52 week high of Rs. 240.00. Bukit Darah gained Rs. 6.60 to close at Rs. 715.00 while NDB Bank closed Rs. 1.90 higher at Rs. 159.90. Continued inflows in John Keells Holdings lead to a net inflow of Rs. 335Mn for the day.

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