The Bourse Weekly Performance (Week-ended 25th
October 2013)
Week-ended 17th October 2013
|
Week-ended 25th October 2013
|
|
All Share Price Index
|
5,976.51
|
5,948.75
|
S&P SL20 Index
|
3,309.00
|
3,280.48
|
Total Turnover for the week (Rs.)
|
3,288,417,974/-
|
4,508,373,529/-
|
Total Net Foreign Inflow/ (Outflow) (Rs.)
|
680,104,604/-
|
674,658,149/-
|
Market Capitalisation (Rs.)
|
2,485,299,367,300/-
|
2,473,757,468,353/-
|
Market PER
|
15.94
|
The early part of this week
saw the Colombo bourse dipping as investors were cashing to buy JKH rights.
Market witnessed stocks slipping for three straight session till Wednesday to a
two-week low, led by telecommunications and hotel shares as investors sold
their stocks to fund buying in top conglomerate John Keells Holdings PLC Rights
Issue. The bourse snapped back on Thursday, ending its three-day losing streak
and closed positive, led mainly by gains in John Keells Holdings along with its
Rights. The latter part of the week saw the benchmark ASI showing an upward trend
backed by gains in John Keells Holdings, Finlays Colombo, Sri Lanka Telecom,
Ceylinco Insurance and National Development Bank, even though the weekly
performance of both the ASI and the S&P were still in the red.
In international markets,
while shares in the West were seen to be rising with notable gains over the
past 5 days, the Asia-Pacific shares were seen to be making negative returns.
Reuter’s reports suggest that, most US shares were up “as economic data
underscored views U.S. monetary stimulus will be in place for the foreseeable
future and as earnings offered some upbeat news”. The report continued to point
out that “Expectations the Fed will continue its stimulus have helped stocks
all year, with the S&P 500 index up 22.8 percent so far for 2013”. On
Friday, Bloomberg reported, the negative impact of this on the emerging markets
where, “The MSCI Emerging Markets Index fell for a second day, losing 0.3
percent. The Shanghai Composite Index dropped 0.9 percent and the Hang Seng
China Enterprises Index of mainland companies listed in Hong Kong slid 1.3
percent”.
Recent market reports on the
Colombo bourse suggested that “given the fact that most investors would now
agree that the potential for short term trading opportunities are markedly
limited, selecting medium to longer term investments would depend on a number
of parameters, most importantly the strength of the top line and its
sustainability”. So far this year foreigners have been net buyers with a year
to date inflow of Rs. 22.8 Billion. At a trailing PER of 15.9X the Colombo
bourses currently includes fundamentally strong shares with a proven track
record at much attractive prices.
