The Bourse Weekly Performance (Week-ended 13th
September 2013)
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Week-ended 6th September 2013
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Week-ended 13th September 2013
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All Share Price Index
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5,672.64
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5,749.46
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S&P SL20 Index
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3,177.17
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3,176.74
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Total Turnover for the week (Rs.)
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1,728,463,487/-
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3,494,289,658/-
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Total Net Foreign Inflow/ (Outflow) (Rs.)
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(36,876,254/-)
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874,827,901/-
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Market Capitalisation (Rs.)
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2,336,407,641,240/-
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2,368,050,552,133/-
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Market PER
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16.13
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The Colombo bourse hit
8-month low levels on Monday 9th September making year to date
losses, and trading in the over sold territory. However, the market rebounded
on foreign buying making year to date gains. Recent stock broker reports quote
““the stock market regained and closed with positive returns for the first time
in the month of September along with the renewed investor confidence about
economic growth and the probable positive response from foreign investors who
participated at the Investor Forum held in Hong Kong” on Monday”. These renewed
interest, at the bourse resulted in the weekly change in the ASI and S&P
indices being +76.82 and -0.43 points respectively.
In important announcements
this week, following the concerns relating to CFIL and Touchwood the previous
week, SEC issued directives on the suspension of trading on Touchwood for three
market days and the commencement of a formal inquiry in to the same. After the
commencement of trading on Friday, the share closed 46.15% up from its previous
close.
In global market news,
Reuters reported, that Japan's Nikkei share average inched up 0.1 percent in
choppy trade on Friday as many investors awaited next week's U.S. Federal
Reserve meeting reaching its 2nd straight weekly gain. The Financial
Times indicated that the weekly performance of the Asia Pacific markets, have
been in the green with Indonesia (Jakarta Comp) and China (FTSE Xinhua)
reporting the highest gains. However, Bloomberg Global Poll of investors reported
that the anticipated reduction in stimulus by the Federal Reserve that has
roiled the financial markets for months will be seen as no big deal if it goes
ahead next week. Thus, the latest developments in to the Syrian conflict with
US and Russia seen to be encouraging Syrian peace talk and the uncertainties
involved with the tapering of stimulus by the Federal Reserve was seen to have
boosted investor confidence on a global platform.
This week’s turnover doubled
from that of previous week with foreigners contributing Rs. 874 Mn as net
foreign inflow. Year to date the Colombo bourse has seen a foreign net buying
of Rs. 19.37 Billion. Highest contributor for the weekly turnover was the
Diversified Holdings sector generating over Rs. 2 Bn which is 62% of this week’s
turnover driven by JKH.
Analysts indicate that the current
price weakness in the Bourse provides an excellent opportunity for medium to
long-term investors to pick up attractively priced growth stocks. They explain
that while positive market sentiment appears to be building up, it is advised
to enter the market in a focused and informed manner selecting counters that
will fully benefit from the positive domestic and foreign economic conditions.
