The Bourse Weekly Performance (Week-ended 6th
September 2013)
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Week-ended 30th August 2013
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Week-ended 6th September 2013
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All Share Price Index
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5,834.04
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5,672.64
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S&P SL20 Index
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3,261.33
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3,177.17
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Total Turnover for the week (Rs.)
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2,427,574,218/-
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1,728,463,487/-
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Total Net Foreign Inflow/ (Outflow) (Rs.)
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186,063,267/-
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(36,876,254/-)
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Market Capitalisation (Rs.)
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2,402,882,748,421/-
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2,336,407,641,240/-
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Market PER
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16.59
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The bourse has reached its 6
month low figures with investor blues continuing to weigh down the sentiments in
the market. The ASI has reached its year opening figures with year to date
gains near 0.5% while the S&P managed to generate year to date gains of 2%.
The change in market capitalization for the year has been Rs.168 Billion a
growth of 7.79%. Turnover levels declined by 29% while the average daily
turnover for the year dropped to Rs.889 Million. This week’s performance
resulted in the ASI and S&P losing 161 and 84 points respectively,
equivalent to a decline of over 2%.
Foreigners were seen to be
exiting the Colombo bourse with net sales of Rs.36 Million. The net foreign
inflow for the year declined to Rs. 18.5 Billion this week. Bloomberg reports
indicated that Asia Pacific markets have picked up momentum this week for the
first time in 9 months. However, the report went on to point out that stock
exchanges in emerging markets continue to experience foreign outflows, as
investors are opting out of the market for less riskier investments ahead of
the expected tapering of stimulus by the US Federal Reserve given the
improvements seen in the US economy. The report quotes “Speculation the Federal
Open Market Committee (FOMC) will dial down purchases at its Sept. 17-18
meeting has roiled markets, pushing up U.S. bond yields and contributing to the
worst rout in the currencies of developing nations in five years”.
In highest contribution for
the weekly turnover came in from the Diversified Holdings sector with
considerable trading in JKH followed by the Banking Finance and Insurance
sector. All sectors recorded negative returns for the week while the largest
drop was indicated in the Stores & Supply sector which lost 11% in index
value. The Colombo bourse currently trades in the over sold territory with a
14-day Relative Strength Index of 25.69. However, experts comment that adverse
effects in emerging markets with the changing global market conditions may put
pressure on the domestic currency and interest rates, which is likely to result
in the Colombo bourse experiencing these bearish sentiments in to the future.
