The Bourse Weekly Performance (Week-ended 1st February2013)

The Bourse Weekly Performance (Week-ended 1^st February2013)

	24th January 2013	1st February 2013
All Share Price Index	5,878.19	5,799.69
S&P SL20 Index	3,190.65	3,196.81
Total Turnover for the week	4,837,826,081/-	9,164,244,919/-
Total Net Foreign Inflow/ (Outflow)	(934,500,213/-)	(420,170,951/-)
Market Capitalisation	2,257,980,391,605/-	2,227,911,758,736/-
Market PER	16.64	16.41

The Colombo bourse extended its falls for this week with foreigners exiting the market on profit taking. The ASI dropped consecutively except on Wednesday while the S&P witnessed mixed sentiments during the week. The ASI lost a total of 78.5 points along with a Rs. 30.06Bn loss in Market Cap. However, turnover levels saw a significant rise because high foreign participation in the market also encouraged the activity levels of the local investors. The total turnoverwas 89% greater than previous week and the average daily turnover was 51% higher than the average daily turnover for 2013 thus far.

Foreigners were seen to be net sellers, bringing the year to date net foreign outflow to Rs. 873.5Mn. This week foreign interest was mainly in counters such as Commercial Bank, LOLC, Sampath Bank and JKH. However, a foreign fund was seen to be exiting the Commercial Bank counter on profit taking and these shares were bought by eager local investors. Other counters that were considered interesting this week were, Hatton National Bank, DFCC, CTC and Nestle.

In sector statistics the highest contributor for the weekly turnover was the Banking Finance & Insurance sector with a whopping Rs. 5.4Bn. The next in line was the Diversified sector which generated a turnover of Rs. 3Bn this week. The highest gain in sector indices was in the Diversified Holdings sector of 0.57% while the highest loss was reported in the Trading sector of 5.28%.

The end of the first month for 2013 saw the Colombo bourse still enjoying marginal year to date gains, as at end of this week the ASI and Market Cap were2.78% approximately. Though foreigners are seen to be net sellers, activity levels in the market have been extremely high and turnover levels have improved immensely. Drastic drops in interest rates at the weekly T Bill auction is likely to make the Colombo bourse far more attractive to investors compared to fixed income investments.

Exchange Rates(Week-ended 1^st February 2013)

Dollar inflows into rupee bonds coupled with selling on forward dollar contracts saw the rupee appreciate during the week to close the week at Rs 126.35/45 in comparison to its previous weeks closing level of Rs 127.10. The total dollar/rupee volume for the previous day (31-01-13) was US $ 89.98 million. Given below are some forward dollar rates that prevailed in the market,              

1 Month – 127.28           

3 Months- 129.20           

6 Months- 131.88

The Bourse Weekly Performance (Week-ended 24th January2013)

The Bourse Weekly Performance (Week-ended 24^th January2013)

	18thJanuary 2013	24th January 2013
All Share Price Index	5,875.77	5,878.19
S&P SL20 Index	3,174.36	3,190.65
Total Turnover for the week	4,202,795,008/-	4,837,826,081/-
Total Net Foreign Inflow/ (Outflow)	301,233,393/-	(934,500,213/-)
Market Capitalisation	2,257,039,130,624/-	2,257,980,391,605/-
Market PER	16.6	16.64

The Colombo Bourse witnessed mixed sentiments this week with indices moving in the green and the red. The main market index closed for the week nearly unchanged while the S&P closed up 16 points which is a 0.51% change from last week. The market was seen to be sliding mostly over foreign selling and in correction of its 3 month high level. As per Reuter’s reports, the bourse has been overbought since early this year with its 14-day relative index at 80.448 on Monday, well above the upper neutral range of 70.

The total turnover as well as the average daily turnover for the week was marginally higher than the previous week (15%). This week was yet another holiday shortened week, which saw foreign inflows for the year taking a negative. As at the close of this week foreigners were seen to be net sellers for the year with a year to date Net foreign outflow of Rs.453.3 Million.

Top turnover generators for this week were Commercial Bank, HNB, Nestle, John Keells Holdings, etc. The highest contribution for the weekly turnover came in from the Banking Finance and Insurance sector with a turnover of over Rs.2.3 Billion mostly generated through trades on Commercial Bank. In sector indices, the highest gain was reported in the Stores & Supplies sector (+3.36%) while the poorest performer was the Power & Energy sector (-3.78%).

The Colombo Boursemarket index has gained nearly 1,000 points from its bottom in 2011. The growth in corporate earnings and the dip in the index have maintained the bourse at attractive valuations.  Analysts believe that despite the 1,000 point gain, the attractiveness of market still remains intact as it trades at 10x FY14E earnings. So far this year, the bourse is reporting year to date gains in terms of the ASI & the Market Cap 4.17% as at the close of this week.

Exchange Rates(Week-ended 24^th January2013)

The rupee remained stable at levels of Rs 127.00 – Rs.127.10 yesterday as volumes traded remained rather moderate. The total USD/LKR traded volume for the previous day (23-01-13) stood at US $ 56.75 million. Given below are some forward dollar rates that prevailed in the market,

1 Month – 128.05          

3 Months- 129.94

6 Months- 132.39

The Bourse Weekly Performance (Week-ended 24th January2013)

The Bourse Weekly Performance (Week-ended 24^th January2013)

	18thJanuary 2013	24th January 2013
All Share Price Index	5,875.77	5,878.19
S&P SL20 Index	3,174.36	3,190.65
Total Turnover for the week	4,202,795,008/-	4,837,826,081/-
Total Net Foreign Inflow/ (Outflow)	301,233,393/-	(934,500,213/-)
Market Capitalisation	2,257,039,130,624/-	2,257,980,391,605/-
Market PER	16.6	16.64

The Colombo Bourse witnessed mixed sentiments this week with indices moving in the green and the red. The main market index closed for the week nearly unchanged while the S&P closed up 16 points which is a 0.51% change from last week. The market was seen to be sliding mostly over foreign selling and in correction of its 3 month high level. As per Reuter’s reports, the bourse has been overbought since early this year with its 14-day relative index at 80.448 on Monday, well above the upper neutral range of 70.

The total turnover as well as the average daily turnover for the week was marginally higher than the previous week (15%). This week was yet another holiday shortened week, which saw foreign inflows for the year taking a negative. As at the close of this week foreigners were seen to be net sellers for the year with a year to date Net foreign outflow of Rs.453.3 Million.

Top turnover generators for this week were Commercial Bank, HNB, Nestle, John Keells Holdings, etc. The highest contribution for the weekly turnover came in from the Banking Finance and Insurance sector with a turnover of over Rs.2.3 Billion mostly generated through trades on Commercial Bank. In sector indices, the highest gain was reported in the Stores & Supplies sector (+3.36%) while the poorest performer was the Power & Energy sector (-3.78%).

The Colombo Boursemarket index has gained nearly 1,000 points from its bottom in 2011. The growth in corporate earnings and the dip in the index have maintained the bourse at attractive valuations.  Analysts believe that despite the 1,000 point gain, the attractiveness of market still remains intact as it trades at 10x FY14E earnings. So far this year, the bourse is reporting year to date gains in terms of the ASI & the Market Cap 4.17% as at the close of this week.