The Bourse Weekly Performance (Week- ended 25th of
July 2014)
Week-ended 25th July 2014
|
Week-ended 18th July 2014
|
|
All Share Price Index
|
6,783.64
|
6,722.20
|
S&P SL20 Index
|
3,764.90
|
3,738.98
|
Total Turnover for the week (LKR)
|
5,537,452,651
|
6,225,177,337
|
Total Net Foreign Inflow/ (Outflow) (LKR)
|
576,319,440
|
628,442,731
|
Market Capitalization
|
2,842,893,517,300
|
2,817,103,689,651
|
Market PER
|
18.30
|
18.11
|
Market PBV
|
2.13
|
2.15
|
The
Colombo bourse regained moderate momentum during the week with the ASPI rising by
0.91% closing at 6,783.64. The secondary S&P SL 20 index gained by 0.69% to
close the week at 3,764.90. Consolidated turnover however declined falling
by 11% WoW to LKR 5.5 Bn. Gainer’s outpaced losers with CFT, REXP and WAPO
rising by 32%, 26% and 24% and offsetting losses in PCHH, GOOD and ASHA which
declined by 24%, 14 % and 10% respectively. Foreign investors’ sentiment continued
to be bullish during this week as well, with total buying of LKR 1,480.89 Mn,
outpacing the total foreign selling of LKR 904.57 Mn. Hence the week observed a net foreign inflow of LKR 576.32Mn. With this
the YTD net foreign inflow to the market topped to LKR 10.84 Bn.The total
market capitalization appreciated by LKR 25.78Bn(Approximately 0.92 %) over the
week to close at LKR 2.84Tn.
The ASPI is up by
6.4% on a MTD basis, and we expect it to continue to trend upwards over the
next couple of weeks with the release of 1Q2015/2Q2014 corporate results
providing the necessary tailwind. While we are encouraged by its performance so
far, we believe that attempting to seek quality on the bourse going forward
however will be the effort of a careful bottom up stock selection process.
While high-quality stocks on the bourse may always be welcomed for risk
management, for those investors with a medium to longer term investment
horizon, these counters present strong fundamental value. Should the market
falter, their robust balance sheets and steady earnings will provide a strong
defence, conversely, should the market rise their strong competitive positions
should allow them to outperform. We advise investors to take advantage of any
price weakness in the market and focus on quality stocks with a strong business
model and sustainable topline and bottomline growth.
