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.