The Bourse Weekly Performance (Week-ended 10th
January 2014)
|
|
Week-ended 3rd January 2013
|
Week-ended 10th January 2014
|
|
All Share Price Index
|
5,973.80
|
6,083.14
|
|
S&P SL20 Index
|
3,294.82
|
3,384.51
|
|
Total Turnover for the week (Rs.)
|
2,374,254,696/-
|
4,984,575,467/-
|
|
Total Net Foreign Inflow / (Outflow) (Rs.)
|
(2,765,564/-)
|
440,793,548/-
|
|
Market Capitalisation (Rs.)
|
2,485,284,831,934/-
|
2,530,783,981,166/-
|
|
Market PER
|
16.08
|
Reuter’s reports indicated
that “the end of the week saw Asian share markets soggy, specially on Friday,
after Chinese trade data proved to be a mixed bag, leaving investors with
little incentive to take positions, ahead of the U.S. jobs. Japan's Nikkei
pared losses to be down a mere 0.1%, while the Hong Kong market added 0.4%.
MSCI's broadest index of Asia-Pacific shares outside Japan also inched up 0.1%”.
Reports on the local market indicated that “Colombo bourse gained 1.3% on
Wednesday to a near five-month high and broke its psychological barrier of
6,000, led by market heavyweight JKH. Analysts said the Central Bank’s interest
rate cut last week had boosted the sentiment and helped sustain the gain”. The
Central Bank slashed the standing lending facility rate or reverse repurchase
rate by 50 basis points to a multi-year low of 8% previous week, in a move to
reduce commercial banks’ interest rate spreads.
This week the ASI gained 109
points while the S&P gained 89 points. Though the start of the week saw a
drop in the ASI for the first time for 2014, the bourse picked up momentum on
Tuesday and rose four straight sessions by close of business on Friday. The
total gain in the ASI for 2014 has been 170 points indicating a promising start
for the year. This week the bourse generated over Rs. 4.9 Billion in turnover,
which was mainly generated by Banking Finance and Insurance, Diversified
Holdings and Manufacturing sectors. The week saw shares such as Commercial
Bank, JKH, CTC, and Nestle trading heavily contributing for this turnover.
Foreigners are seen to be
keen buyers in the market bringing the Net Foreign inflow for the year to Rs.
97.7 Mn within seven sessions. Regardless of the promising indicators currently
witnessed, some analysts suggest that investors are seen to be locking in funds
in risk-free debentures instead of risky assets due to a sluggish Bourse amid
falling interest rates. However, while local investors are currently seen to be
fairly risk averse, turnover at the Colombo Bourse was boosted by foreign
buying in risky assets. Reports suggest that investors should focus on quality
shares for double-digit returns.
