The Bourse Weekly Performance (Week-ended 3rd May 2013)

The Bourse Weekly Performance (Week-ended 3^rd May 2013)

	26th April 2013	3rd May 2013
All Share Price Index	5,962.17	6,013.18
S&P SL20 Index	3,359.36	3,405.99
Total Turnover for the week	3,913,532,526/-	3,237,887,525/-
Total Net Foreign Inflow/ (Outflow)	780,940,190/-	348,105,468/-
Market Capitalisation	2,284,190,957,568/-	2,304,777,125,888/-
Market PER	16.10	16.30

Expectation of a further rate cut at the Central Bank monetary policy meeting has sent the main index of the Colombo bourse on a soaring hike surpassing the 6000 threshold. Traders pointed out that the easing interest rates, the firming domestic currency against the US$ and strong retail buying have been the key contributors for the rise in the ASI. This week the ASI and the S&P gained a total of 51 and 46 points respectively.

The blue-chip counters that contributed for the weekly turnover were Colombo Dockyard, Commercial Bank, National Development Bank, John Keells Holdings, Tokyo Cement, etc. However, turnover this week was 17% below the previous week, while foreign interest too declined by over 50%, even though foreigners were seen to be net buyers throughout the week. Sector statistics indicated that the turnover generator this week was the usual Banking, Finance & Insurance followed closely by Land & Property sector mainly due to retail interest seen in Colombo Land & Development Company. This week saw the Power & Energy sector reporting the highest gain of 7.99% while the biggest loser was the Stores & Supplies sector.

So far this year both ASI and the S&P are recording year to date gains of 6.56% and 10.39% respectively. The growth in market capitalization for the year is 6.33% equivalent to Rs. 137.1Bn. The total turnover reported at the Colombo bourse this year is Rs. 75.7Bn while the net foreign inflow for the year has been Rs. 8.93Bn. With possible indications of the policy rates easing out in the future, investors and analysts remain positive on the outlook of the Colombo Bourse in the short-run. The Colombo bourse currently carries a PER of 16.3X, which is a 2% growth for the year 2013.