The Bourse Weekly Performance (Week-ended 11th
October 2013)
Week-ended 04th October 2013
|
Week-ended 11th October 2013
|
|
All Share Price Index
|
5,837.95
|
5,947.42
|
S&P SL20 Index
|
3,231.79
|
3,283.62
|
Total Turnover for the week (Rs.)
|
4,809,349,498/-
|
3,292,715,617/-
|
Total Net Foreign Inflow/ (Outflow) (Rs.)
|
652,649,502/-
|
999,770,082/-
|
Market Capitalisation (Rs.)
|
2,427,654,761,490/-
|
2,473,178,955,776/-
|
Market PER
|
15.59
|
As the US Government
shut-down passes its 11th day, a ray of hope was seen when the US
officials were conducting meetings to consider raising the US debt ceiling, a
question that is seen to be a key concern in the global markets. On Friday,
Bloomberg reported that, “As word of possible progress emerged, Asian stock
indexes from Japan to Australia rallied more than 1 percent today, fueling a
1.3 percent jump in the MSCI Asia Pacific Index of regional equities”. However,
in another report they also commented that the second-biggest gain of the year
for the Standard & Poor’s 500 Index (SPX) failed to trigger the same impact
in US Stocks. Reuters’ reported that the move by the US President to hold
discussions with his Republican counterparts is after the warnings by G20
nations that failure to meet the US debt obligations “could spark a financial
crisis and tip the world's largest economy into recession with damaging
repercussions that would be felt worldwide”. The report also goes on to state
that “officials from around the world had expressed confidence the United
States would break through the political logjam that had already led to a
partial shutdown of the U.S. government”. The Financial Times Global Macro-maps
indicated that the performance of almost all Asian Shares in the past 5 days
have been in the green.
Recent reports on the
Colombo bourse saw Analysts suggesting that “With a year-to-date gain of 3% in
dollar terms and a Price Earnings Ratio of 12 times, the valuation of Sri
Lanka’s stock market remains attractive in comparison to its peers”. The report
went on to state that “the, divergence between global equity markets and Sri
Lanka’s Bourse during the month has been stark, with both developed and
emerging markets rising significantly while the Sri Lankan Bourse experienced
only mediocre growth”. This week saw yet another change in the Directorate of
Touchwood adding to the already existing concerns on the company. The week also
saw several key crossings in counters such as JKH, CTC, Commercial Bank, HNB
and Access Engineering. Foreigners have been playing a key role at the Colombo
bourse this week too with the year to date net foreign inflow rising to Rs. 21.46Billion.
Of the total turnover a significant portion came in on Friday through
crossings. However, the turnover was seen to be 32% less than the previous
week. The overall market gained 109 points this week in ASPI equivalent to Rs.
45Billion in market cap. The S&P index gained 51 points this week. The
Colombo bourse currently generates a year to date return of 5.3% in ASPI.
