The Bourse Weekly Performance (Week-ended18thof
July 2014)
Week-ended 18th July 2014
|
Week-ended 11th July 2014
|
|
All Share Price Index
|
6,722.20
|
6,661.40
|
S&P SL20 Index
|
3,738.98
|
3,708.16
|
Total Turnover for the week (LKR)
|
6,225,177,337
|
10,004,408,207
|
Total Net Foreign Inflow/ (Outflow) (LKR)
|
628,442,731
|
294,481,928
|
Market Capitalization
|
2,817,103,689,651
|
2,791,594,657,555
|
Market PER
|
18.11
|
17.95
|
Market PBV
|
2.15
|
2.13
|
Following a week of healthy momentum, the bourse closed
virtually unchanged at 6,722.20 on Friday. Consolidated turnover declined by
38% WoW to Rs. 6.2 Bn. Gainers modestly outpaced losers with PCP, ARPI and AMF
rising by 28%, 27% and 28% and offsetting losses in PARA, SIRA and HEXP which
declined by 19%, 14% and 13% respectively. Meanwhile, global equities
experienced a moderate sell off following news of a downed Malaysian airlines
jet at the Ukraine-Russia border which sent investors into defensive assets.
The bourse’s performance over the last fortnight has been
highly inspiring, and we expect the market to regain momentum next week,
however characterized by a series of rallies and pullbacks. Given that the
equity market has a notorious tendency to rush from one side to another in
response to the ebb and flow of optimism or pessimism, we recommend investors
to make a directional call, build a quality portfolio and take advantage of
what is increasingly becoming a ‘stockpickers’ market. Investors are
consequently advised to build a portfolio of high quality cash rich companies
with strong balance sheets that have underperformed and which have the upside
potential to re-rate to their intrinsic values.
