The Bourse Weekly Performance (Week-ended 6th December 2013)

The Bourse Weekly Performance (Week-ended 6^th December 2013)

	Week-ended 29th November 2013	Week-ended 6th December 2013
All Share Price Index	5,775.09	5,810.24
S&P SL20 Index	3,174.63	3,183.09
Total Turnover for the week (Rs.)	2,467,599,253/-	4,691,747,416/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	(78,164,263/-)	335,918,500/-
Market Capitalisation (Rs.)	2,402,708,281,659/-	2,417,342,265,262/-
Market PER	14.98	15.00

Asian stock markets were seen to be wavering ahead of the US employment data. Analysts pointed out that expected results of the employment levels coupled with fears of US stimulus tapering at the December Feds policy meeting was likely sending mixed vibes across international markets. Reuter’s reported that “The market would tend to see anything over 200,000 jobs created as greatly adding to the chance of a tapering this month, while a result under 150,000 would diminish the risk”. The report explained that the total U.S. employment is over 136 Million, where by a difference in a monthly rise in jobs of 150,000 or 200,000 is statistically insignificant. However, experience suggests that any change in the US employment data has the power to move markets massively. The uncertainties pertaining to the tapering has been a drag over the past few months, however, Asian markets remain concerned of any developments relating to the same. The FT Macro Markets indicated that the five-day performance of the American and Asian markets have mainly been in the negative territory while the European markets have been able to continue their rising momentum.

The Colombo bourse which was seeing a downward trend after the September quarter earnings pointed to slower growth. Reports also indicated that growing concerns on corporate revenue growths post the budget also contributed to this decline. However, this week saw the bourse picking up a slow momentum ahead of Mondays Central Bank Monetary Policy meeting. Ahead of that interest rates too have been declining at the weekly Treasury bill auctions as well as in the secondary market. Recent market reports suggest that possible decrease in interest rates may be contributing to the renewed interest seen at the Colombo Bourse.

This week the ASI and S&P indices gained 35 and 8 points respectively. Turnover for the period nearly doubled from the previous week, foreign participation too in the market improved. The Banking Finance and Insurance sector contributed for nearly Rs. 2.2 Billion of the weekly turnover. The Colombo bourse currently reports a year to date gain of 2.96% in terms of the ASI.