The Bourse Weekly Performance (Week-ended 31st May 2013)

The Bourse Weekly Performance (Week-ended 31^st May 2013)

	Week-ended 23rd May 2013	Week-ended 31st May 2013
All Share Price Index	6,488.85	6,463.06
S&P SL20 Index	3,666.04	3,646.32
Total Turnover for the week	6,201,045,467/-	5,441,981,414/-
Total Net Foreign Inflow/ (Outflow)	1,904,515,120/-	573,905,074/-
Market Capitalisation	2,491,726,828,316/-	2,481,835,737,088/-
Market PER	17.62	17.50

The Colombo Stock Exchange stabilized during the week when compared to the mini rally towards the early part of this month. However, this week, the main indices dipped due to profit taking and the activity level was seen to be low compared to previous weeks. This week ASI and S&P lost a total of 25 and 19 points respectively. The loss in the ASI was equivalent to a loss of Rs. 9.89Bn in Market Cap.

The largest contribution to the weekly turnover came in on Thursday, 30^th (Rs.2.5Bn), when Hemas Holdings PLC bought a majority stake in pharmaceutical firm J.L. Morison Sons and Jones (Ceylon) PLC for Rs. 1.05Bn while domestic investors were seen to be mostly active in retail counters. The deal resulted in the Chemicals and Pharmaceuticals sector generating the highest turnover this week followed by Banking Finance & Insurance and Manufacturing sectors. The average daily turnover this week was Rs. 1.08Bn, marginally above the average daily turnover reported so far for 2013 of Rs. 1.04Bn. The highest gain this week was marked in the Land & Property sector while the biggest loser was the Information Technology sector. Foreign participation remained low this week too and the net foreign inflow for the week was well below the inflow recorded the previous weeks. The net foreign inflow for 2013 has now reached Rs. 13.66Bn.  

According to the Reuters reports, the Colombo bourse 14-day Relative Strength Index (RSI) was in over-bought territory, at 78.252 on Thursday, 30^th  and has been above the upper neutral level of 70 since 16 April. However, blue-chips such as JKH, Distilleries, Chevron and several Banking counters were seen to be trading heavily. It is evident that the slowing down market awaits a clear direction. So far this year the Colombo bourse has reported an year to date gain of 14.5%.

The Bourse Weekly Performance (Week-ended 23rd May 2013)

The Bourse Weekly Performance (Week-ended 23^rd May 2013)

	Week-ended 17th May 2013	Week-ended 23rd May 2013
All Share Price Index	6,380.70	6,488.85
S&P SL20 Index	3,589.26	3,666.04
Total Turnover for the week	6,149,882,051/-	6,201,045,467/-
Total Net Foreign Inflow/ (Outflow)	1,587,615,169/-	2,239,826,705/-
Market Capitalisation	2,450,178,233,693/-	2,491,726,828,316/-
Market PER	17.32	17.62

The Colombo bourse continues to rise with foreign interest accelerating while retailers are robust. This week the ASI and S&P indices gained a total of 108 (+1.69%) and 76 (+ 2.14%) points respectively. Though Turnover was en par previous week’s total turnover value, the average daily turnover this week was Rs.1.5Bn as opposed to Rs. 1.2Bn reported the previous week. Foreign Interest was booming with the Net Foreign Inflow for the year reaching Rs. 13Bn. The Wesak Poya shortened week, saw the year to date gains rising further and the ASI closed the week 14.99% higher from its close for 2012.

Favourite blue-chips this week were Commercial Bank, JKH, Distilleries, Cargills, etc. In sector statistics the highest contribution for the weekly turnover came in from the Banking Finance and Insurance sector generating Rs. 1.7Bn while the Diversified Holdings sector generated Rs. 858Mn. The top gainer this week was the Beverage Food and Tobacco sector (+7.69%) which saw counters such as Distilleries, Ceylon Cold Stores, Ceylon Tobacco and Nestle trading heavily. The biggest loser in sector indices was the Information Technology sector losing 3.85%.

The Colombo boursehas soared over 250 points since the 50bps interest rate cut announced on 10^th May. Analysts anticipate the bullish sentiments to continue further and advise investors to make sound investment decisions. So far this year the Colombo Bourse has gained a total of Rs. 324Bn in Market Capital equivalent to 14.95%. The Colombo bourse continues to be attractive at a trailing PER of 17.62.

The Bourse Weekly Performance as of 16th May 2013

The Bourse Weekly Performance as of 16^th May 2013

	6th May to 9th May 2013	10th May to 16th May 2013
All Share Price Index	6,238.71	6,287.00
S&P SL20 Index	3,526.51	3,531.37
Total Turnover for the week	9,124,945,377/-	6,220,584,131/-
Total Net Foreign Inflow/ (Outflow)	378,976,186/-	1,537,301,950/-
Market Capitalisation	2,391,221,845,715/-	2,414,197,575,315/-
Market PER	16.86	17.03

Please note the proceeding report on the Colombo Stock Exchange performance is based on statistics for the period 10^th May to 16^th May 2013 (both days inclusive).

As indicated by the relevant authorities, the Central Bank cut down its policy rates by 50 basis points last week. However, the cut failed to steer the expected reaction at the Colombo Bourse on Friday (10^th May). Many Analysts pointed out that the market has already reacted to the expectations of policy rate cuts and the mini rally witnessed during the early part of that week, was in purview of such policy changes, along with profit taking. The bullish momentum did not hold on for the current period under review and the main indices at the Colombo bourse were seen to be fluctuating in the red and the green. The ASI and the S&P indices both gained a total of 48.29 and 4.86 points respectively during the period even though the average daily turnover was considerably low at Rs. 1.24Bn, when compared to the Rs. 2.28Bn made during the prior period.

Net Foreign Inflow for the year 2013 had reached Rs. 10.85Bn as at 16^th May. Though foreign participation during the previous period was low, the period under review saw foreign interests significantly rising on key blue chips in the Diversified Holdings and Banking Finance and Insurance sectors. These investor favourite sectors were the top turnover generators this period. During this period the largest gain was reported in the Motors sector by 10.13% while the biggest loser was the Construction and Engineering sector by -2.42%. The key counters that traded this period were, JKH, Aitken Spence, NDB, NTB, Sampath Bank, Commercial Bank, HNB, United Motors, etc.

The Colombo bourse peeked during the early part of the previous week, before closing on the 10^th at 18 month high levels. Though the early part of this week saw mixed sentiments, the Colombo bourse still remains at its 18 month high levels. Analysts believe the market is still very much attractive compared to its peers, trading at a P/E multiple of 17.03X. The announcements of quarterly financials by many companies also contributed to the bullish sentiments in the market indicating the growth potential within some key blue-chips at the Colombo Bourse. The market closed trading for the 16^th with double digit year to date gains of 11.41% and 11.38% in terms of ASI and Market Cap respectively.