The Bourse Weekly Performance as of 9th May
2013
Please note the proceeding report on the Colombo Stock
Exchange performance is based on statistics for the period 6th May
to 9th May 2013 (both days inclusive).
The first four market
sessions of this week saw outstanding performance at the Colombo bourse, where
the market gained a total of 225 and120 points in terms of the ASI and the
S&P indices respectively. This gain in the market main index is equivalent
to 3.75%, while the S&P too gained 3.54%. The mini rallies that took place
on 6th and 7th May 2013, were the main contributors to
this gain. In these two days alone the ASI and S&P gained a total of 188
and 105 points respectively. The bullish-sentiments at the bourse began to
accelerate with the announcements made by the Central Bank and the Government
Treasury on possible rate cuts in the near future. The news awakened a dull
bourse and the market statistics have since reached its one and a half year
high levels.
Turnover during the four
market sessions in consideration was 182% above that reported the previous week
(which also included four market sessions due to May Day holiday). This was driven
mainly by the Rs. 4.13Bn turnover generated on Monday of which Rs. 3.43Bn came
in from the Manufacturing sector. The change in ownership of Lanka Ceramics
created interest in the Lanka Ceramics and Royal Ceramics counters which
resulted in the increase in turnover for the sector. The usual investor
favourite Banking Finance and Insurance sector generated a turnover of Rs.
2.81Bn 6th to 9th May and its active counters were
Vallibel One, Commercial Bank, NDB, HNB, Seylan Bank (Non Voting), etc. The Oil
Palms and Telecommunications sectors were the only sectors indicating bearish
sentiments for the period whereas all other sector indices were in the green
and the highest gain was reported in the Services sector (12%). The said period
did not witness a high level of activity by foreign investors in comparison to
local investors and the net foreign inflow for the year 2013 stands at
Rs.9.31Bn as at 9th May.
The weekly treasury auction
held 8th May 2013 saw the bill rates marginally dropping yet again across
all maturities, further outlining the possibilities of declining interest rates
as indicated by the CBSL early April. The ASI since then has gained a total of
471 points, bringing the year to date gains at the Colombo Bourse to
substantially high levels to close for 9th May at 10.56%.
