Trade Summary Market - 29/11/2013

Source: Direct FN

http://www.cse.lk/cmt/upload_cse_report_file/daily_report_374_29-11-2013.pdf

The Colombo bourse closed up yesterday though on a disappointing turnover of Rs.254.1 million, down from the previous day’s Rs.718.9 million, with the All Share Price Index gaining 22.89 points (0.40%) while S&P SL20 was up 11.04 points (0.35%) with 102 gainers ahead of 70 losers while 57 counters closed flat.

There were no crossings yesterday. LIOC gained Rs.2.30 to close at Rs.32.60 on over 0.8 million shares transacted to lead the floor trades, contributing Rs.27 million to turnover. Brokers said that retailers were among those trading in this stock which recorded a low of Rs.30.80 and a high of Rs.33 - a one-year high for the counter.

Commercial Bank followed gaining a rupee to close at Rs.116 on nearly 0.2 million shares done between Rs.115 and Rs.116.40 contributing Rs.20.5 million to turnover. Brokers saw some foreign buying interest in this stock which contributed Rs.20.5 million to yesterday’s turnover.

LOLC closing Rs.1.10 up at Rs.65.50 on over 0.2 million shares done between Rs.65 and Rs.65.50 generating a turnover of Rs.14.2 million and HNB (non-voting) closing a rupee up at Rs.114 on 0.1 million shares contributing Rs.11.6 million turnover were among the other most traded counters in value terms.

Interest in Dialog continued with the counter closing 10 cents up at Rs.9 on nearly 1.3 million shares contributing Rs.11.6 million to turnover.

Among the heavily traded penny stocks were Blue Diamonds (voting) closing 30 cents down at Rs.3.30 on over 3.2 million shares, PC House Holdings closing flat at Rs.1.70 on 6.3 million shares and Touchwood closing 10 cents down at Rs.3.10 on over 2.2 million shares.

Tokyo Cement (voting) closed 80 cents up at Rs.26.60 on over 0.3 million shares, Laughs Gas closed 50 cents down at Rs.29 on over 0.2 million shares and Vallibel One closed 10 cents up at Rs.16.70 on nearly 0.4 million shares.

HNB announced an interim dividend for 2013 of Rs.1.50 per share (voting and non-voting), XD from Dec. 9 and with payment on Dec. 13.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=93037

Market's slow pace, with recent frequent dipping & occasional upward trend but marginally, reflects the investors preference to stick with other financial instruments that earn higher returns with lower risk. Positive macro economic indicators published so far have not supported or are not strong enough, to push up trading floor activities due to so called "confidence & sentiments". Unfortunately no applications are implemented to overcome such long debating topic which has become a square peg in the well. Also, investment concept of mid to long term, is not understood yet by many, resulting quick, paltry gain within the least time period. Whatever the combinations of investors nature, at the end of the day, everything rests on simple economic theory of demand & supply rotating in the vicious cycle.

When momentum is killed artificially turnover will fall low that happened.And when it's rebuilding again it starts with the low turnover.Let's see next week.

Current indications, if not in the real economy, at least in the Treasuries market, is that interest rates are on a downward trend.

In such a scenario it should give a boost to the stock market. However the contrary appeared to be happening, with the bourse recording its tenth lowest turnover figure for the year to date, with a sum of Rs. 254.1 million at Friday’s trading.

This follows the market making its second lowest turnover for the year to date with a figure of Rs. 193.48 million on Monday.

However, on Friday, boosted by gains made in Nestle’s share price, market indies made pyrrhic gains, with the benchmark ASPI increasing its value over its previous day’s close by 0.40% to 5,775.09 points and the newly introduced S&P SL 20 Index by 0.35% to 3,174.63 points on that Rs. 254.1 million.

The fortunes of market indices are intrinsically connected with the movement of the value of the bourse’s market capitalization.

Reasons
Meanwhile, the reasons behind the “bear” run of the bourse are many, the most obvious and the most recent being poor performances of listed companies for the quarter ended September 30, 2013.

Meanwhile the lowest turnover the bourse has made for the year to date was Rs. 191.7 million which was on July 12. The second lowest: Rs. 193.48 million on Monday, November 25; third lowest:  Rs. 197.44 million (November 11), fourth lowest: Rs. 201 million (June 24), fifth lowest:  Rs. 220.9 million (November 5), sixth lowest: Rs. 228.2 million (July 10), seventh lowest: Rs. 234.3 million (November 15), eighth lowest:  Rs. 239.3 million (September 6), ninth lowest:  Rs. 241.9 million (July 11), tenth lowest: Rs. 254.1 million (November 29),  eleventh lowest: Rs. 254.35 million (July 9) and twelfth lowest: Rs. 265.9 million (June 28).
At the beginning of the week on Monday, the ASPI declined by 0.29% to 5,775.67 points; while the S&P SL 20 Index fell by 0.47% to 3,182.94 points, whilst also registering a net foreign outflow (NFO) of Rs.11.98 million.

On Tuesday, it fell for the third consecutive day, with the ASPI declining by 0.48% to 5,748.01 points; while the S&P SL 20 Index fell by 0.45% to 3,168.59 points on a Rs. 464.7 million turnover, whilst registering a Rs. 49.4 million NFO.

Meanwhile, the bourse, making a dismal follow up to making its second lowest turnover for the year to date with a sum of Rs. 193.5 million at Monday’s (November 25) trading, fell for the fourth consecutive day on Wednesday, dogged by poor quarterly earnings for the quarter ended September 30, 2013; whilst also suffering a NFO for the third consecutive day, this time a sum of Rs. 46.37 million, though for the year to date having had enjoyed a Rs. 22.6 billion net foreign inflow (NFI).

The seeming lowering of interest rates, usually an attraction to the bourse, has however not taken off, vis-à-vis giving a boost to the stock market.

Adding to the bourse’s woes are the recent price hikes of essential commodities in the immediate aftermath of the previous week’s budget presentation by gazette notification, further denting retail consumer spending power, already buffeted by a 50% increase in electricity rates.

The ASPI fell by 0.06% to 5,744.67 points; while the newly introduced S&P SL 20 Index declined by 0.19% to 3,162.52 points on a Rs. 836.5 million turnover on Wednesday.

Meanwhile the lowest turnover the bourse has recorded for the year to date is a sum of Rs. 191.7 million on July 12, while the third lowest: Rs. 197.44 million on November 11.

CTC
However on Thursday, Ceylon Tobacco (CTC), the market’s second largest capitalized stock, helped stop
the market’s four day losing streak, when its share price made gains.

As a result, the ASPI increased its value by a marginal 0.13% to 5,752.20 points over its previous day’s close, while the newly introduced S&P SL 20 Index gained by 0.03% to 3,163.59 points on a Rs. 718.9 million turnover.

CTC’s share price gained by 2.63% to Rs. 1,057.10 a share.

When market capitalization increases, the value of the ASPI in particular increases.

Nevertheless the bourse suffered an NFO for the fourth consecutive day, with an NFO figure of Rs. 6.74 million at Thursday’s trading, however, in the year to date, the bourse has had experienced a NFI of Rs. 22.6 billion.  Thursday’s turnover was boosted by foreign to foreign transfers on Aitken Spence and local to local transfers on E Channelling which contributed to nearly 50% of the day’s turnover.

On Friday the market made a Rs. 36.3 million NFI.
http://www.thesundayleader.lk/2013/12/01/rates-fall-perception-no-boost-to-bourse/