The Bourse Weekly Performance (Week-ended 04th October 2013)

The Bourse Weekly Performance (Week-ended 04^th October 2013)

	Week-ended 27th September 2013	Week-ended 04th October 2013
All Share Price Index	5,808.62	5,837.95
S&P SL20 Index	3,210.30	3,231.79
Total Turnover for the week (Rs.)	3,214,899,732/-	4,809,349,498/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	687,835,103/-	652,649,502/-
Market Capitalisation (Rs.)	2,392,346,681,121/-	2,427,654,761,490/-
Market PER	16.52	15.59

This week saw tension rising in global markets, as investors and analysts watched the 1^st US Government Shut-down in 17 years taking place, creating significant concern on other US Economic decisions due later. Reuters reported that the key decision will fall on October 17 on raising the US debt ceiling, failure to approve which, would result in the world’s largest economy dishonoring its debt obligations creating a ripple crisis all across the globe. As the US shut-down entered its 4^th day, the overall weekly performances of many global markets including Asia Pacific were in the red. The financial times global macro-maps reported that the biggest drop in Asian Markets over the previous 5 days was reported in Japan’s Nikkei with a drop of 0.94%. Reuter’s reports indicated that the fall on Friday’s trading is the biggest fall since the 6^th of September for Nikkei, which they explained was because “lack of progress in the U.S. budget standoff raised concerns that partisan politics in Washington could lead to a full-blown crisis in the world's biggest economy”.

Contrary to most world markets, the Colombo bourse gained 29 and 21 points respectively this week in terms of the ASI and S&P indices. Touchwood continued to be the center of attention in many market reports, with yet another change in its directorate and being ordered by Colombo Commercial High Courts to submit its repayment plan by 14^th October. The Share which was temporarily halted from trading on 27^th September, commenced trading on 30^th September at Rs.5, but closed for the week on Friday 4^th October 14% down at Rs.4/30. This week also saw the Shareholders of JKH approving its Right Issue with attached warrants and the share is now trading Ex-Rights.

Though the global markets are seen to be facing concerns, the foreign inflows in to the bourse continued to rise, with foreigners being net buyers’ year-to-date of over Rs. 20.4Billion. The year 2012 saw foreigners contributing a net foreign inflow of Rs. 39.2Billion. Currently the Colombo bourse, is now seen to be trading at its highest since the 28^th of August, where it dropped by over 170 points. This week’s turnover also saw a significant rise compared to previous weeks, and the highest contribution for the weekly turnover came in from the investor favourites, Diversified Holdings and Banking Finance and Insurance sectors. The Blue chips that contributed to the largest transactions this week were Nestle and Sampath Bank.

The Colombo bourse currently generates a year to date gain of 3.45% in terms of the ASI and so far this year it has seen its market cap growing by Rs. 260Billion.