The Bourse Weekly Performance (Week-ended 24th January2013)

The Bourse Weekly Performance (Week-ended 24^th January2013)

	18thJanuary 2013	24th January 2013
All Share Price Index	5,875.77	5,878.19
S&P SL20 Index	3,174.36	3,190.65
Total Turnover for the week	4,202,795,008/-	4,837,826,081/-
Total Net Foreign Inflow/ (Outflow)	301,233,393/-	(934,500,213/-)
Market Capitalisation	2,257,039,130,624/-	2,257,980,391,605/-
Market PER	16.6	16.64

The Colombo Bourse witnessed mixed sentiments this week with indices moving in the green and the red. The main market index closed for the week nearly unchanged while the S&P closed up 16 points which is a 0.51% change from last week. The market was seen to be sliding mostly over foreign selling and in correction of its 3 month high level. As per Reuter’s reports, the bourse has been overbought since early this year with its 14-day relative index at 80.448 on Monday, well above the upper neutral range of 70.

The total turnover as well as the average daily turnover for the week was marginally higher than the previous week (15%). This week was yet another holiday shortened week, which saw foreign inflows for the year taking a negative. As at the close of this week foreigners were seen to be net sellers for the year with a year to date Net foreign outflow of Rs.453.3 Million.

Top turnover generators for this week were Commercial Bank, HNB, Nestle, John Keells Holdings, etc. The highest contribution for the weekly turnover came in from the Banking Finance and Insurance sector with a turnover of over Rs.2.3 Billion mostly generated through trades on Commercial Bank. In sector indices, the highest gain was reported in the Stores & Supplies sector (+3.36%) while the poorest performer was the Power & Energy sector (-3.78%).

The Colombo Boursemarket index has gained nearly 1,000 points from its bottom in 2011. The growth in corporate earnings and the dip in the index have maintained the bourse at attractive valuations.  Analysts believe that despite the 1,000 point gain, the attractiveness of market still remains intact as it trades at 10x FY14E earnings. So far this year, the bourse is reporting year to date gains in terms of the ASI & the Market Cap 4.17% as at the close of this week.

Exchange Rates(Week-ended 24^th January2013)

The rupee remained stable at levels of Rs 127.00 – Rs.127.10 yesterday as volumes traded remained rather moderate. The total USD/LKR traded volume for the previous day (23-01-13) stood at US $ 56.75 million. Given below are some forward dollar rates that prevailed in the market,

1 Month – 128.05          

3 Months- 129.94

6 Months- 132.39

The Bourse Weekly Performance (Week-ended 24th January2013)

The Bourse Weekly Performance (Week-ended 24^th January2013)

	18thJanuary 2013	24th January 2013
All Share Price Index	5,875.77	5,878.19
S&P SL20 Index	3,174.36	3,190.65
Total Turnover for the week	4,202,795,008/-	4,837,826,081/-
Total Net Foreign Inflow/ (Outflow)	301,233,393/-	(934,500,213/-)
Market Capitalisation	2,257,039,130,624/-	2,257,980,391,605/-
Market PER	16.6	16.64

The Colombo Bourse witnessed mixed sentiments this week with indices moving in the green and the red. The main market index closed for the week nearly unchanged while the S&P closed up 16 points which is a 0.51% change from last week. The market was seen to be sliding mostly over foreign selling and in correction of its 3 month high level. As per Reuter’s reports, the bourse has been overbought since early this year with its 14-day relative index at 80.448 on Monday, well above the upper neutral range of 70.

The total turnover as well as the average daily turnover for the week was marginally higher than the previous week (15%). This week was yet another holiday shortened week, which saw foreign inflows for the year taking a negative. As at the close of this week foreigners were seen to be net sellers for the year with a year to date Net foreign outflow of Rs.453.3 Million.

Top turnover generators for this week were Commercial Bank, HNB, Nestle, John Keells Holdings, etc. The highest contribution for the weekly turnover came in from the Banking Finance and Insurance sector with a turnover of over Rs.2.3 Billion mostly generated through trades on Commercial Bank. In sector indices, the highest gain was reported in the Stores & Supplies sector (+3.36%) while the poorest performer was the Power & Energy sector (-3.78%).

The Colombo Boursemarket index has gained nearly 1,000 points from its bottom in 2011. The growth in corporate earnings and the dip in the index have maintained the bourse at attractive valuations.  Analysts believe that despite the 1,000 point gain, the attractiveness of market still remains intact as it trades at 10x FY14E earnings. So far this year, the bourse is reporting year to date gains in terms of the ASI & the Market Cap 4.17% as at the close of this week.

The Bourse Weekly Performance (Week-ended 18th January2013)

                                                 
                                   The Bourse Weekly Performance (Week-ended 18^th January2013)

	11thJanuary 2013	18th January 2013
All Share Price Index	5,746.49	5,875.77
S&P SL20 Index	3,133.87	3,174.36
Total Turnover for the week	3,795,582,364/-	4,202,795,008/-
Total Net Foreign Inflow/ (Outflow)	(115,850,885/-)	301,233,393/-
Market Capitalisation	2,207,359,696,896/-	2,257,039,130,624/-
Market PER	16.3	16.6

The Colombo Stock Market sored with improved turnover and foreign inflows. The main index picked up momentum and enjoyed a green week before closing at 5875 which is a 2.25% rise from last weeks close. Index heavy weight shares were traded heavily and the market PER too has increased significantly this week.

Though the weekly turnover was marginally above when compared to last week, the average daily turnover for the week had an increase of over 38%. The top contributors for this week’s turnover were DIST, JKH, SPEN, HNB, COMB, SAMP, CTC, etc. Foreigners continued to be bullish buying Rs. 1.9Billion worth of fundamentally sound stocks with future upside potential and sellingRs. 1.6Billion worth of stocks, bringing the year-to-date figure of net foreign inflow in 2013 to over Rs. 481Million. In sector performances the highest contributors for the weekly turnover was Banking Finance and Insurance followed by Diversified Holdings sector with revenues of Rs. 1.5Billion and Rs. 930Million respectively. The highest gain in the sector indices for the week was reported in the Power & Energy sector (+5.84%) while the only negative performer was the Stores & Supplies sector (-1.8%).

Some Analysts point out that local corporates are likely to face aless challenging operating environment in 2013 when compared to 2012. They also suggest that corporates with greater efficiency, productivity, strong and proven management teams are likely to generatesuperior returns and value to their shareholders. However, they also point out that the Colombo bourse is likely to operate at a more discounted PER when compared to the far greater multipliers it had enjoyed in the past. Changes in the economic situation in the island, such as declining interest rate conditions and strengthening of the domestic currency are also likely to contribute for the better days at the Colombo Bourse. This week the market capitalization increased by Rs. 49.6Billion. The Colombo bourse has year to date gains in both the ASI and the Market Cap of 4.1% approximately.

Exchange Rates(Week-ended 18^th January2013)

The rupee lost ground by around 30 cents during the week to close the week at levels of Rs 126.50/55. It hit a weekly low of Rs 126.75 on the back of importer demand for forward dollar contracts. The total dollar/rupee volume for the previous day (17-01-13) was US $ 47.85 million. Given below are some forward dollar rates that prevailed in the market, 
1 Month – 127.55             
3 Months- 129.44            
6 Months- 131.90.