The Bourse Weekly Performance (Week-ended 26th July 2013)

The Bourse Weekly Performance (Week-ended 26^th July 2013)

	Week-ended 19th July 2013	Week-ended 26th July 2013
All Share Price Index	6,041.06	6,051.77
S&P SL20 Index	3,409.16	3,427.87
Total Turnover for the week (Rs.)	2,754,756,167/-	1,393,468,028/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	860,216,272/-	295,481,067/-
Market Capitalisation (Rs.)	2,324,809,138,238/-	2,328,942,078,142/-
Market PER	16.08	16.02

Mixed sentiments were witnessed this week while the main indices of the market closed week-to-date in the green (marginally). However, turnover levels remained considerably dull while foreign interest in the Colombo bourse remained through net buying. Following the monthly meeting of the policy makers, CBSL announced the interest rates would remain unchanged with the expectation that inflation would remain in single digits for the rest of the year supported by supply side improvements and an absence of demand-driven pressures. Despite such assurances from the Bank, sentiments remained sluggish mainly due to concerns over the weakening rupee and high lending rates while investors waited for clear direction through the market.

Capitalising on the weakening rupee, foreign investors are seen to be net buyers. The sentiments of the local investors seemed scattered and looking for direction for short-term market opportunities. Some experts were found commenting that, given the nature of the Sri Lankan economy with not much structural problems foreigners are finding it rather difficult to avoid some of the most resilient stocks in the region. The year-to-date net buying made by foreigners so far currently stands at Rs. 16.94 Billion.

The week saw the Colombo bourse gain Rs. 4.13Billion in Market Capitalisation with an average daily turnover of Rs. 348.3Million. However, the daily turnover levels in the current bourse have been rather dull and below the average daily turnover reported for the year of Rs. 942.4 Million. Blue-chip counters heavily contributed to the bearish sentiments during the week and counters such as JKH, CTC, SPEN, HNB, DIAL were seen to have traded in large numbers. In sector statistics this week, Power & Energy sector marked the biggest gain while the Chemicals & Pharmaceuticals was the biggest loser. As of the close of this week, the Colombo bourse reports year-to-date gains of 7%.

The Bourse Weekly Performance (Week-ended 19th July 2013)

The Bourse Weekly Performance (Week-ended 19^th July 2013)

	Week-ended 12th July 2013	Week-ended 19th July 2013
All Share Price Index	6,028.74	6,041.06
S&P SL20 Index	3,385.43	3,409.16
Total Turnover for the week (Rs.)	1,466,585,143/-	2,754,756,167/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	126,286,045/-	860,216,272/-
Market Capitalisation (Rs.)	2,315,425,677,312/-	2,324,809,138,238/-
Market PER	16.1	16.08

The bearish sentiments at the Colombo bourse reversed towards the latter part of the week when renewed foreign interest in JKH took the ASI from its one-week low to close 55 points up on Friday 19^th July. The index gained a total of 12 points for the week, while the S&P gained 23 points for the week. The growth in market capitalisation this week was Rs. 9.38Bn equivalent to a rise of 0.41%.

The turnover for the week grew considerably with an average daily turnover of Rs. 550.9Mn. Though this is only 57% of the average daily turnover recorded for this year (Rs. 960.2Mn), the value is 88% higher than the previous week.  Among the largest contributors were blue-chip counters such as John Keells Holdings, Sampath Bank, Dialog Telecom, National Development Bank, etc. The highest weekly turnover was generated by the Diversified Holdings sector contributing Rs. 1.18Bn for the weekly turnover. The Banking Finance and Insurance sector too contributed Rs. 890.3Mn for the turnover. These two sectors together contributed for 75% of the weekly turnover. In other statistics, the highest gain for the week was reported in the Stores & Supplies sector of 4.53% while the highest loss was reported in the Oil Palms sector for -3.03%. The net foreign inflow for the week topped Rs. 860Mn a significant rise from the net sales and low inflows reported in the recent past.

The Colombo bourse currently records year-to-date values as follows;

Gain in ASI                                            7.05%

Gain in S&P                                          10.50%

Gain in Market Capitalisation                  7.25%

Total Market Capitalisation                     Rs. 157.2Bn

Net Foreign Inflow                                 Rs.   16.6Bn

The Bourse Weekly Performance (Week-ended 12th July 2013)

The Bourse Weekly Performance (Week-ended 12^th July 2013)

	Week-ended 5th July 2013	Week-ended 12th July 2013
All Share Price Index	6,048.18	6,028.74
S&P SL20 Index	3,383.46	3,385.43
Total Turnover for the week (Rs.)	3,225,751,648/-	1,466,585,143/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	490,215,301/-	126,286,045/-
Market Capitalisation (Rs.)	2,322,779,865,088/-	2,315,425,677,312/-
Market PER	16.3	16.1

The Colombo bourse saw mixed sentiments this week, amidst several key developments such as the volatile domestic currency against the US$ and the announcement made by JKH for a US$650 million deal to build a resort. After experiencing bearish sentiments for 5 straight session’s analysts pointed out that the multi-million dollar project announcement played a key role in boosting the market sentiments in to the green. The market closed on Friday with the ASI losing 19 points and MPI closing at same levels as previous week.

Turnover levels dropped far below the daily average values and experts suggest that fears of possible pull out by foreign investors continue to worry the market. The total turnover reported for this week was 55% below the previous week while the average daily turnover for the week was Rs. 293Mn. The average daily turnover for 2013 which was above Rs. 1Bn since the beginning of the year now stands at Rs. 976Mn. In sector indices the highest contribution for the weekly turnover came in from the Banking Finance & Insurance and Diversified Holdings sectors. Amongst the counters that traded heavily this week were JKH, LIOC. CTC, SAMP, NTB, and COMM, etc. In sector indices, the highest gain was reported in the Services sector while the Stores& Supplies sector reported the highest loss.

On Monday, 8^th July the ASI fell below 6000 points to close at 5995 bringing the 14-day Relative Strength Index (RSI) of the Colombo bourse below an over-sold mark of 30 points. However, the latter part of the week saw the Index picking up gradually and is currently at 40. Interpretation of an RSI of 40 still indicates an over-sold situation atthe bourse representing possible potential for a turnaround in the short-run from its current sentiments. As of the 12^th of July 2013, the CSE indicates a year to date gain of 6.8% currently with a total gain in market capitalization of Rs. 147.Bn.