Thursday, October 17, 2013

The Bourse Weekly Performance (Week-ended 17th October 2013)



The Bourse Weekly Performance (Week-ended 17th October 2013)
Week-ended 11th October 2013
Week-ended 17th October 2013
All Share Price Index
5,947.42
5,976.51
S&P SL20 Index
3,283.62
3,309.00
Total Turnover for the week (Rs.)
3,292,715,617/-
3,288,417,974/-
Total Net Foreign Inflow/ (Outflow) (Rs.)
999,770,082/-
680,104,604/-
Market Capitalisation (Rs.)
2,473,178,955,776/-
2,485,299,367,300/-
Market PER
15.88
15.94

In global markets the Dow-Jones rose over 200 points on Wednesday which Bloomberg explained was because “disruptions from the U.S. debt-ceiling debate prompted speculation the Federal Reserve will maintain stimulus”. This was after “President Barack Obama signed into law a measure ending the 16-day government shutdown and extending the nation’s borrowing authority until early next year”. Most global markets were seen to be reacting positively to these latest developments while Chinese markets Hang Seng and FTSE Xinhua recorded negative returns.
The Holiday shortened week at the Colombo bourse saw the ASI and S&P indices rising backed by a surprising rate cut at this month’s monetary policy meeting of CBSL. The market gained a total of 29 points this week in ASI and 25 points in S&P. This is equal to Rs. 12Billion rise in market capitalization. This week’s market trades were mostly dominated by local investors who were keenly trading on JKH and JKH Rights. Foreigners brought in a net inflow of Rs. 680Million increasing the year to date figure to Rs. 22Billion. Diversified holdings contributed to 77% of the weekly turnover backed by the JKH counter. The biggest loss was recorded in the Footwear and Textile sector while the Services sector made the biggest gain.
The 50 bps rate cut created quite a buzz in the market and generated over Rs. 2Billion in turnover on Tuesday, 15th October. Analyzing the recent rate cut by the CBSL a weekly market report suggested that “Going forward this may reduce the market interest rates gradually, which may draw back the investors to the stock market. Currently CSE is trading at a PE of 12.0x, which is 2.4% discount to the MSCI frontier market index PE and 20% discount to the MSCI frontier emerging market index PE”.
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