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.