The Bourse Weekly Performance (Week-ended 18th January2013)

                                                 
                                   The Bourse Weekly Performance (Week-ended 18^th January2013)

	11thJanuary 2013	18th January 2013
All Share Price Index	5,746.49	5,875.77
S&P SL20 Index	3,133.87	3,174.36
Total Turnover for the week	3,795,582,364/-	4,202,795,008/-
Total Net Foreign Inflow/ (Outflow)	(115,850,885/-)	301,233,393/-
Market Capitalisation	2,207,359,696,896/-	2,257,039,130,624/-
Market PER	16.3	16.6

The Colombo Stock Market sored with improved turnover and foreign inflows. The main index picked up momentum and enjoyed a green week before closing at 5875 which is a 2.25% rise from last weeks close. Index heavy weight shares were traded heavily and the market PER too has increased significantly this week.

Though the weekly turnover was marginally above when compared to last week, the average daily turnover for the week had an increase of over 38%. The top contributors for this week’s turnover were DIST, JKH, SPEN, HNB, COMB, SAMP, CTC, etc. Foreigners continued to be bullish buying Rs. 1.9Billion worth of fundamentally sound stocks with future upside potential and sellingRs. 1.6Billion worth of stocks, bringing the year-to-date figure of net foreign inflow in 2013 to over Rs. 481Million. In sector performances the highest contributors for the weekly turnover was Banking Finance and Insurance followed by Diversified Holdings sector with revenues of Rs. 1.5Billion and Rs. 930Million respectively. The highest gain in the sector indices for the week was reported in the Power & Energy sector (+5.84%) while the only negative performer was the Stores & Supplies sector (-1.8%).

Some Analysts point out that local corporates are likely to face aless challenging operating environment in 2013 when compared to 2012. They also suggest that corporates with greater efficiency, productivity, strong and proven management teams are likely to generatesuperior returns and value to their shareholders. However, they also point out that the Colombo bourse is likely to operate at a more discounted PER when compared to the far greater multipliers it had enjoyed in the past. Changes in the economic situation in the island, such as declining interest rate conditions and strengthening of the domestic currency are also likely to contribute for the better days at the Colombo Bourse. This week the market capitalization increased by Rs. 49.6Billion. The Colombo bourse has year to date gains in both the ASI and the Market Cap of 4.1% approximately.

Exchange Rates(Week-ended 18^th January2013)

The rupee lost ground by around 30 cents during the week to close the week at levels of Rs 126.50/55. It hit a weekly low of Rs 126.75 on the back of importer demand for forward dollar contracts. The total dollar/rupee volume for the previous day (17-01-13) was US $ 47.85 million. Given below are some forward dollar rates that prevailed in the market, 
1 Month – 127.55             
3 Months- 129.44            
6 Months- 131.90.

The Bourse Weekly Performance (Week-ended 11th January2013)

The Bourse Weekly Performance (Week-ended 11^th January2013)

	4thJanuary 2013	11th January 2013
All Share Price Index	5,747.71	5,746.49
S&P SL20 Index	3,121.71	3,133.87
Total Turnover for the week	3,719,200,068/-	3,795,582,364/-
Total Net Foreign Inflow/ (Outflow)	401,813,761/-	(115,850,885/-)
Market Capitalisation	2,207,815,827,456/-	2,207,359,696,896.00
Market PER	16.2	16.3

Profit taking saw the Colombo bourse in the red on most part of the week and the ASI closed for the week almost unchanged from the previous weeks’ close. The S&P however managed to close marginally in the green. Analysts pointed out that ‘private deals on blue chips helped boost turnover during the week even though retail participation was seen to be muted’. Though the weekly turnover is marginally higher than the week before, the average daily turnover for the week is lower than the previous week as well as the average daily turnover for the year so far.

Foreign participation was rather poor this week and foreigners were seen to be net sellers. Though 2012 saw an extremely high level of foreign participation, the same cannot be said regarding the first few days in 2013. The most notable trades this week were high-value off the market trades in Asiri Central Hospitals Plc and Commercial Bank of Ceylon Plc on the 8^th and a large crossing of approximately 1.8 million shares of Hatton National Bank on the 10^th. Apart from these, other counters that were favourites this week were JKH, LOLC, NDB, Distilleries, Lion Brewery, Ceylon Cold Stores, Chevron Lubricants, etc. Once again the Banking, Finance & Insurance sector was the highest contributor to the weekly Turnover with a turnover of over Rs.1.2 Billion. In sector indices best performance was reported in the Footwear & Textiles sector while the poorest was the Trading sector.

Though in both 2011 and 2012, the Colombo bourse had not generated returns to investors on a year-to-date basis Analysts are certain that if investors follow a clear investment strategy taking the risk element in to account and investing in fundamentally strong shares, the equity market would be a promising investment option. They also point out that in 2012, the strongest gains were reported in the Food & Beverages, Banking & Finance and Diversified sectors which was due to strong national consumption. The trend in domestic consumption is seen to be continuing and sectors such as the above along with Construction & Hospitality may enjoy sustainable growth in the coming year. So far, the ASI &the Market Capitalisation report a year-to-date profits of approximately 1.8%.

Exchange Rates(Week-ended 11^th January2013)

The rupee gained to a weekly high of Rs.125.90 on foreign purchases in to rupee bonds and a decline in forward dollar premiums. However buying interest at these levels saw the dollar gain marginally to close the week at levels of Rs. 126.15/25. The total dollar/rupee volume for the previous day (10-01-13) was US $ 56.54 million. Given below are some forward dollar rates that prevailed in the market,            

1 Month – 127.15            

3 Months- 128.73           

6 Months- 131.05

The Bourse Weekly Performance (Week-ended 4th January2013)

The Bourse Weekly Performance (Week-ended 4^th January2013)

	28th December 2012	4th January 2013
All Share Price Index	5,607.13	5,747.71
S&P SL20 Index	3,068.99	3,121.71
Total Turnover for the week	1,274,305,888/-	3,719,200,068/-
Total Net Foreign Inflow/ (Outflow)	742,014,977/-	401,813,761/-
Market Capitalisation	2,153,937,200,178/-	2,207,815,827,456/-
Market PER	15.79	16.2

The Colombo bourse ended 2012, on a better note when compared to the end of 2011. Loss levels were brought down to justifiable levels & the overall loss levels as at the 31^st December 2012 was, 7.10% in the ASI & 2.09% in the Market Cap. This is a reasonable comeback when compared to the early part of the year which saw loss levels of over 20%. Overall, Analysts and Investors point out that it was a good year due to foreign investments which saw a record making total net foreign inflow of Rs.39.2 Billion for the year. The prospects of the New Year are seen to be positive as per Analysts given the priority given to capital market development in 2013 by the government. As per some Analysts “The removal of the credit ceiling imposed on banks by monetary authorities,with effect from January 2013 may result in a dip in the market interest rates on the back of higher availability of savings for lending purposes”. Bearing witness of the said statement the interest rates continued to slide at the weekly Treasury bill auction while the Sri Lanka gilt yields continued to plunge on numerous occasions in the secondary market during the week.So far the start of 2013 has been commendable with the main indices continuously being in the green. Thanks to a foreign-foreign deal on Commercial Bank shares and with the support of the retail Investors the once subdued Colombo bourse gained remarkably during the week and managed to generate over Rs.3.7 Billion in turnover.In sector performances the highest contribution for the weekly turnover came in from the Banking Finance & Insurance sector with Rs.2.2 Billion. The highest gain in the sector indices this week was in the Construction & Engineering sector (+5.14%) while the highest dip was reported in the Services sector (-2.3%). Favourite counters this week were, Commercial Bank, CTC, Lion Breweries, JKH, Colombo Dockyard, Asian Hotels and Properties and Aitken Spence Hotel Holdings, etc. The ASI surpassed the 5700 threshold with a total gain of 140 points for the week, of which 104 points was during the first three sessions of the New Year. The total gain in the S&P was 52 points for the week. So far the Colombo bourse maintains a year to date gain of1.86% in terms of the ASI and the Market Cap. As the first week in 2013, ends on a positive note, Investors & Analysts look forward to a fruitful year at the Colombo Bourse.

Exchange Rates(Week-ended 4^th January2013)

The rupee was seen fluctuating within a band of Rs 127.15 to Rs 128.00 during the week. The USD/LKR rate was seen appreciating during the latter part of the week on the back of a drop on forward dollar premiums and some foreign exchange relaxations offered by Central bank at its Road Map for the year 2013. The total dollar/rupee volume for the previous day (03-01-13) was US $ 37.15 million. Given below are some forward dollar rates that prevailed in the market,

1 Month – 128.39, 

3 Months- 130.04, 

6 Months- 132.59

Colombo Stock Market Summary