The Bourse Weekly Performance (Week-ended 28th June 2013)

The Bourse Weekly Performance (Week-ended 28^th June 2013)

	Week-ended 21st June 2013	Week-ended 28th June 2013
All Share Price Index	6,155.27	6,121.01
S&P SL20 Index	3,466.57	3,431.74
Total Turnover for the week (Rs.)	4,986,529,301/-	4,501,432,990/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	171,867,177/-	(1,026,617,344/-)
Market Capitalisation (Rs.)	2,363,898,447,478/-	2,350,744,338,432/-
Market PER	16.71	16.6

The losing streak at the Colombo bourse continued this week before experiencing a marginal come back towards the latter part of the week. Final day of trading saw the Automated Trading System of the CSE experiencing some technical issues, due to which the market operated only for two hours. The main contributors for the weekly turnover this week were several major crossings in counters such as John Keells Holdings, Nanda Investment & Finance, Commercial Bank, Sampath Bank, Lanka Tiles, Ceylon Tobacco and Lion Brewery. Many analysts pointed out that the global market situation has resulted in foreign investors exiting the Asian markets and the highest weekly net foreign outflow was reported for 2013 this week with an outflow surpassing Rs. 1Bn.

Banking Finance & Insurance and Diversified Holdings sectors contributed for 86.14% of the weekly turnover. Sector indices saw mixed sentiments during the week, where the highest gain for the week was reported in the Footwear and Textile (+4.5%) sector, while the highest loss was reported in the Information Technology (-28%) sector. This week the Colombo bourse lost 0.56% in market capitalization. The ASI and S&P lost 34 points each before the indices closed for the week at 6121 and 3431 respectively.

Year to date results of the Colombo bourse indicate gains of 8.47%, 11.23% and 8.45% in terms of the ASI, S&P and Market Cap. The market has generated a total of Rs. 120.27Bn in turnover this year with an average daily turnover of Rs. 1.01Bn. The net foreign inflow for the year so far is Rs. 15.17Bn. The Colombo bourse closed trading on Friday with a trailing PER of 16.6X which is 4% higher than the closing PER reported on the 31^st of December 2012 (15.93X). With changing economic conditions across the globe investors and analysts at the bourse are seen to be observers from the sidelines. However, experts suggest that the current sentiment is a temporary set-back and the market may pick-up after a brief correction.

The Bourse Weekly Performance (Week-ended 21st June 2013)

The Bourse Weekly Performance (Week-ended 21^st June 2013)

	Week-ended 14th June 2013	Week-ended 21st June 2013
All Share Price Index	6,219.39	6,155.27
S&P SL20 Index	3,504.35	3,466.57
Total Turnover for the week (Rs.)	3,199,970,684/-	4,986,529,301/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	428,985,779/-	171,867,177/-
Market Capitalisation (Rs.)	2,388,511,534,018/-	2,363,898,447,478/-
Market PER	16.89	16.71

The week saw the Colombo bourse witnessing further dips with very poor turnover levels. The only major contributor for the weekly turnover was Thursday, 20^th June when two crossings were recorded from JKH where a total of 10mn shares changed hands between foreign parties at a price of LKR 265/- per share. All other market days saw the daily turnover significantly below the average daily turnover reported so far for 2013 of Rs. 1.02Bn. Apart from John Keells Holdings several crossings were also recorded from counters such as Commercial Bank, Carsons and Distilleries on the said date.

Many global markets and Asian peers witnessed a trend of foreign capital outflows in the wake of rise in the US Treasury yields and many of the emerging markets saw some of the biggest selling as investors rushed to the exits on Thursday. Similarly, the LKR was seen to be falling probably due to foreign investors booking forwards to hedge their outflows.

Diversified holdings sector reported the highest turnover for the week contributing 62.24% to the weekly turnover followed by Banking Finance and Insurance sector which contributed 21.56%. The only sectors to report gains for the week were Food Beverage and Tobacco (1.18%) and Oil Palms (3.09%) sectors. The biggest loser this week was the Information Technology sector losing 11.62% in index points.

The overall performance for this week reported a total loss of 1.03% of market Capitalisation equivalent to Rs. 24.61Bn. The ASI and S&P indices both lost a total of 64 and 37 points respectively. The year to date gains at the Colombo bourse has narrowed to 9% with a trailing PER of 16.71X.

The Bourse Weekly Performance (Week-ended 14th June 2013)

The Bourse Weekly Performance (Week-ended 14^th June 2013)

	Week-ended 7th June 2013	Week-ended 14th June 2013
All Share Price Index	6,307.43	6,219.39
S&P SL20 Index	3,550.47	3,504.35
Total Turnover for the week (Rs.)	4,855,541,001/-	3,199,970,684/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	1,939,423,193/-	428,985,779/-
Market Capitalisation (Rs.)	2,422,128,523,280/-	2,388,511,534,018/-
Market PER	17.12	16.89

The bearish sentiment continued at the Colombo bourse this week as well. The ASI fell to a one-month closing low with trading volume slumping to a two-month low despite thin foreign buying mid-week. Reports pointed out that the dip in the bourse was due to local investors being worried over possible pull out by foreign investors like in other Asian markets amid the rise in US treasury yields. Asian shares hit fresh 2013 lows and Japanese stocks had another volatile session mid-week, extending a broad route in global equities driven by lingering fears of a softening US stimulus which unnerved many investors globally. This week the bourse reported a total loss of 88 and 46 points in the ASI and S&P indices respectively. This was equivalent to a loss of Rs. 33.61Bn in market capitalization.

Turnover levels dropped drastically and the average daily turnover for the week was Rs.639Mn. The average daily turnover for 2013 so far is Rs. 1.02Bn. Regardless of the fear of possible exit by foreigners, foreign interest in the Colombo bourse continued during the week. The net foreign inflow for the year surpassed Rs. 16Bn and foreigners continued to be net buyers during the week. Many blue-chips were seen to be dragging the market down and experts suggest it is a momentary profit taking situation. In sector statistics all indices made net losses this week too. The highest loss was reported in the Information Technology sector. The Banking Finance & Insurance sector generated the highest turnover this week too of Rs. 1.14Bn.

The year to date gains at the Colombo bourse which were doubling during the early part of May is seen to be dipping drastically. The year to date gain dipped by over 13% this week and is currently at 10.2%. However, considering other markets in the Asia-pacific region the Colombo Stock Exchange is seen to be performing fairly well. Analysts point out that at a trailing market PER of 16X, the Colombo bourse, has many fundamentally strong shares at very attractive prices.