The Bourse Weekly Performance (Week-ended 28th March2013)

The Bourse Weekly Performance (Week-ended 28^th March2013)

	22ndMarch 2013	28th March 2013
All Share Price Index	5,768.88	5,735.68
S&P SL20 Index	3,312.71	3,293.57
Total Turnover for the week	3,525,687,168/-	3,330,899,111/-
Total Net Foreign Inflow/ (Outflow)	679,095,495/-	476,003,345/-
Market Capitalisation	2,217,810,067,456/-	2,205,051,069,546/-
Market PER	15.6	15.51

The holiday shortened 3-session week saw the bourse slipping from a one-month high on Monday despite foreign inflows, snapping a seven-session gaining streak, as investors looked for direction. The turnover on Thursday, 28^th March reached LKR 2.03Bn when a significant volume of Commercial Bank & Sampath Bank shares changed hands amongst the local investors. The losses for the week in the ASI and S&P were 33.2 and 19.41 points respectively. The loss in market cap was LKR 12Bn equal to 0.58%.

Foreign participation saw a net foreign inflow for the week even though they were net sellers on the last trading day. So far this year foreigners have been net buyers with a year to date net foreign inflow of LKR 4.9Bn. Undoubtedly, the highest contribution for the weekly turnover came in from the Banking Finance & Insurance sector with a total contribution of LKR 1.93Bn driven by popularity due to attractive dividend announcements. The Diversified Holdings sector generated a turnover of LKR 621Mn this week. In sector indices, the highest gain was reported in the Land & Property sector while the largest loss came in from the Services sector.

The macro-environment in the country saw the interest rates marginally rising at the weekly Treasury bill auction for the fourth consecutive week. The inflation for the month of March dipped and the LKR stabilized against the US$. Though interest rates were seen to be rising in the primary market, the secondary market rates decreased before trading closed for Easter. So far the Colombo bourse has reported the following year to date gains;

ASI – 1.64%      S&P – 6.75%    Market Capitalisation – 1.73%

The Bourse Weekly Performance (Week-ended 22ndMarch2013)

The Bourse Weekly Performance (Week-ended 22^ndMarch2013)

	15th March 2013	22ndMarch 2013
All Share Price Index	5,704.53	5,768.88
S&P SL20 Index	3,262.44	3,312.71
Total Turnover for the week	3,014,259,098/-	3,525,687,168/-
Total Net Foreign Inflow/ (Outflow)	1,027,091,077/-	679,095,495/-
Market Capitalisation	2,192,532,439,040/-	2,217,810,067,456/-
Market PER	15.4	15.6

The Colombo bourse saw an uphill climb this week amidst foreign interest. The main market index gained for seven straight sessions and reached its one month high figures. The controversial UNHRC issue failed to bother foreign investors as they contributed significantly to the islands bourse regardless of the final outcome from the vote on the draft resolution. However, local investors stayed on the sidelines as yields in T-bills rosemarginally for three consecutive weeks. During the week The Department of Census and Statistics put Gross Domestic Product (GDP) growth in 2012 at 6.4%, however this is lower than the growth expected for this period and the growth in 2011 of 8.4%.The economy in the fourth quarter has grown by 6.3% over the same period of the previous year, picking up from a three-year low of 4.8% in the third quarter of 2012.

This week, investors continued to support the Banking Finance Insurance and Diversified Holdings sectors as counters such as JKH, Commercial Bank, Sampath Bank, NDB and Seylan Bank made it to the top turnover generators. The gains in sector indices indicated that the highest came from the Services sector (+4.51%) while the poorest performer was the Information Technology sector as the sector index lost 1.63%. The weekly turnover was marginally higher than the previous week and the largest contribution came in on Friday. The average daily turnover this week was Rs. 705Mn,30% below this year’s average daily turnover reported so far. Foreigners were net buyers through-out this week and the net foreign inflow for the year now stands at Rs. 4.44Bn.

The market capitalization gained a total of Rs. 50.2Bn while the ASI and the S&P indices gained 64 and 50 points respectively. So far this year the bourse has been generating marginal year to date gains in terms of the main index and market cap. Although the gains slid down last month this week’s performance has put the bourse back in the green. So far this year, the Colombo bourse has made a year-to-date gain of 2.23% in terms of the ASI.

The Bourse Weekly Performance (Week-ended 15thMarch2013)

The Bourse Weekly Performance (Week-ended 15^thMarch2013)

	8th March 2013	15th March 2013
All Share Price Index	5,691.39	5,704.53
S&P SL20 Index	3,222.74	3,262.44
Total Turnover for the week	6,742,202,937/-	3,014,259,098/-
Total Net Foreign Inflow/ (Outflow)	3,274,145,060/-	1,027,091,077/-
Market Capitalisation	2,187,046,289,408/-	2,192,532,439,040/-
Market PER	15.4	15.4

The Colombo bourse saw mixed sentiments amidst improved buying activity in the blue-chips &marginal increase in interest rates at the weekly Treasury bill auction for all maturities. The ASI gained a mere 13 points this week even though the blue-chip index S&P gained 39 points. The increase in market cap was limited to Rs. 5.48Bn which was equivalent to an increase of 0.25% only.

Though the net foreign inflow for this week was not as outstanding as the previous week, foreign investors continued to be significant participants at the Colombo bourse. So far this year foreigners have been net buyers with a year to date inflow of Rs. 3.7Bn. Foreigners made a significant contribution to the Colombo bourse in 2012 where the net foreign inflow reached record levels of Rs. 39.2Bn.

In sector statistics the Information Technology sector reported a 12.77% loss. The best performer was the HealthCare sector with a gain of 2.18%. The weekly turnover was 55% below the previous week mainly because many investors took to the sidelines amidst the developing UNHRC outcomes and the interest rate direction. Latest financial developments on possible foreign inflows in future failed to give height to the Colombo Bourse. The biggest contributors for the weekly turnover were the usual Banking Finance & Insurance sector and the Diversified Holdings sector.

The Colombo bourse is at its breakeven levels in terms of the year-to-date gains in both the ASI and the Market Cap. Many blue-chips remain highly attractive at its current prices and foreigners are seen to be capitalizing on this opportunity while local investors continue to take the back-seat awaiting a proper market direction. The current market P/E continues to be at 15.4.