Friday, August 23, 2013

The Bourse Weekly Performance (Week-ended 23rd August 2013)



The Bourse Weekly Performance (Week-ended 23rd August 2013)



Week-ended 16th August 2013
Week-ended 23rd August 2013
All Share Price Index
6,233.21
5,951.83
S&P SL20 Index
3,491.55
3,342.96
Total Turnover for the week (Rs.)
3,964,732,407/-
3,715,349,258/-
Total Net Foreign Inflow/ (Outflow) (Rs.)
988,800,070/-
1,021,289,824/-
Market Capitalisation (Rs.)
2,567,268,096,981/-
2,451,390,332,928/-
Market PER
17.65
16.90

Investor sentiments were dented this week at the Colombo bourse due to concerns over rupee volatility and earning fears as pointed out by many analysts. The total market declined 4.51% in ASPI and in market cap. The ASPI fell and closed below the psychological threshold of 6000 points on the last trading day of the week.

Net foreign buying for the year surpassed Rs. 18 Million this week. Foreign interest was seen in Banking Finance and Insurance sector counters such as Sampath Bank, Commercial Bank, HNB, Diversified Holdings sector counters such as JKH, SPEN along with CTC. These two favorite sectors together contributed for 87% of the weekly turnover which was en par with the turnover generated the previous week. This week the Colombo bourse maintained its average daily turnover of Rs. 920 Million. All sectors recorded losses for the week except the Information Technology and Oil Palms sectors while the biggest loser for the week was the Beverage Food and Tobacco sector as CTC closed 18.5% lower than its close for the previous week.

Experts explain the changing global conditions in the world economy are a significant contributor to the negativity building up at the bourse. Reuters reported that the US bond yields were seen to be rising backed by tapering of the US stimulation programme soon creating an appetite to buy US assets. Reports indicated that most Asian stock markets and currencies are likely to be hit hard after the Fed Reserve policy meeting held Thursday. As suggested in reports, many Asian stock markets such as Jakarta, Comp (-8%), Straits Times (-3%), S&P CNX Nifty (-0.6%) were seen to decline this week fuelled by the rising dollar and US monetary policy changes. MSCI benchmark indices were all seen to be in the red, thus justifying the Rs. 115 Billion loss in market cap for the week at the Colombo bourse. CSE still managed to generate year to date gains which have now fallen to single digit figures, 5% in ASPI and 8% in market cap.