The Bourse Weekly Performance (Week-ended 8thMarch2013)
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1st March 2013
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8th March 2013
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All Share Price Index
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5,652.69
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5,691.39
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S&P SL20 Index
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3,206.85
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3,222.74
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Total Turnover for the week
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3,441,502,637/-
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6,742,202,937/-
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Total Net Foreign Inflow/ (Outflow)
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(91,277,425/-)
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3,274,145,060/-
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Market Capitalisation
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2,171,703,001,088/-
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2,187,046,289,408/-
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Market PER
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15.3
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Regardless of UNHRC
development foreigners were happy buyers with a net foreign inflow of nearly
Rs. 3Bn this week. The largest contribution came in from an off the counter
deal where German and Dutch fundsinvested Rs. 1.8 billion to acquire a
strategic collective stake of 38% in Asian Alliance Insurance PLC.Analysts
noted the investment and resultant confidence by the two European financing
agencies indicated well for the stock market as well as the overall financial
services industry and undoubtedly the highest contributor for the weekly
turnover was the Banking, Finance and Insurance Sector.
Overall Investors were seen
to be resilient as the bourse was mostly in the green and the dipping indices
have once again reversed its direction and is increasing year-to-date gains. Foreign
buying, as well as relatively better local investor sentiments, boosted the
Colombo bourse this week where the main index closed up 0.68% while the
blue-chip index S&P closed up 0.5% for the week. The average daily turnover
was much higher than the average daily turnover marked for the year and many
blue chips such as JKH, HNB, Sampath Bank, Commercial Bank, NDB, Asian Alliance
Insurance were among the favourites at this week’s share market.
At this week’s Treasury bill
auction the interest rates edged upward. However, the Colombo bourse reacted in
the opposite to the theoretical expectations. Thus amidst signs of possible interest
rate rises in the future and the stabilizinglocal currency against the US$, Analysts
believe this is an ideal time to buy fundamentally valued stocks. Foreign investors
at the Colombo bourse are an excellent indicator of this timing. So far this
year foreigners are net buyers with a year to date net foreign inflow of Rs.
2.5Bn. The Market Cap increased by Rs. 15Bn and the year to date gain in the
ASI as at the 8th of March 2013 was0.86%.
