The Bourse Weekly Performance (Week-ended 19th July 2013)

The Bourse Weekly Performance (Week-ended 19^th July 2013)

	Week-ended 12th July 2013	Week-ended 19th July 2013
All Share Price Index	6,028.74	6,041.06
S&P SL20 Index	3,385.43	3,409.16
Total Turnover for the week (Rs.)	1,466,585,143/-	2,754,756,167/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	126,286,045/-	860,216,272/-
Market Capitalisation (Rs.)	2,315,425,677,312/-	2,324,809,138,238/-
Market PER	16.1	16.08

The bearish sentiments at the Colombo bourse reversed towards the latter part of the week when renewed foreign interest in JKH took the ASI from its one-week low to close 55 points up on Friday 19^th July. The index gained a total of 12 points for the week, while the S&P gained 23 points for the week. The growth in market capitalisation this week was Rs. 9.38Bn equivalent to a rise of 0.41%.

The turnover for the week grew considerably with an average daily turnover of Rs. 550.9Mn. Though this is only 57% of the average daily turnover recorded for this year (Rs. 960.2Mn), the value is 88% higher than the previous week.  Among the largest contributors were blue-chip counters such as John Keells Holdings, Sampath Bank, Dialog Telecom, National Development Bank, etc. The highest weekly turnover was generated by the Diversified Holdings sector contributing Rs. 1.18Bn for the weekly turnover. The Banking Finance and Insurance sector too contributed Rs. 890.3Mn for the turnover. These two sectors together contributed for 75% of the weekly turnover. In other statistics, the highest gain for the week was reported in the Stores & Supplies sector of 4.53% while the highest loss was reported in the Oil Palms sector for -3.03%. The net foreign inflow for the week topped Rs. 860Mn a significant rise from the net sales and low inflows reported in the recent past.

The Colombo bourse currently records year-to-date values as follows;

Gain in ASI                                            7.05%

Gain in S&P                                          10.50%

Gain in Market Capitalisation                  7.25%

Total Market Capitalisation                     Rs. 157.2Bn

Net Foreign Inflow                                 Rs.   16.6Bn

The Bourse Weekly Performance (Week-ended 12th July 2013)

The Bourse Weekly Performance (Week-ended 12^th July 2013)

	Week-ended 5th July 2013	Week-ended 12th July 2013
All Share Price Index	6,048.18	6,028.74
S&P SL20 Index	3,383.46	3,385.43
Total Turnover for the week (Rs.)	3,225,751,648/-	1,466,585,143/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	490,215,301/-	126,286,045/-
Market Capitalisation (Rs.)	2,322,779,865,088/-	2,315,425,677,312/-
Market PER	16.3	16.1

The Colombo bourse saw mixed sentiments this week, amidst several key developments such as the volatile domestic currency against the US$ and the announcement made by JKH for a US$650 million deal to build a resort. After experiencing bearish sentiments for 5 straight session’s analysts pointed out that the multi-million dollar project announcement played a key role in boosting the market sentiments in to the green. The market closed on Friday with the ASI losing 19 points and MPI closing at same levels as previous week.

Turnover levels dropped far below the daily average values and experts suggest that fears of possible pull out by foreign investors continue to worry the market. The total turnover reported for this week was 55% below the previous week while the average daily turnover for the week was Rs. 293Mn. The average daily turnover for 2013 which was above Rs. 1Bn since the beginning of the year now stands at Rs. 976Mn. In sector indices the highest contribution for the weekly turnover came in from the Banking Finance & Insurance and Diversified Holdings sectors. Amongst the counters that traded heavily this week were JKH, LIOC. CTC, SAMP, NTB, and COMM, etc. In sector indices, the highest gain was reported in the Services sector while the Stores& Supplies sector reported the highest loss.

On Monday, 8^th July the ASI fell below 6000 points to close at 5995 bringing the 14-day Relative Strength Index (RSI) of the Colombo bourse below an over-sold mark of 30 points. However, the latter part of the week saw the Index picking up gradually and is currently at 40. Interpretation of an RSI of 40 still indicates an over-sold situation atthe bourse representing possible potential for a turnaround in the short-run from its current sentiments. As of the 12^th of July 2013, the CSE indicates a year to date gain of 6.8% currently with a total gain in market capitalization of Rs. 147.Bn.

The Bourse Weekly Performance (Week-ended 5th July 2013)

The Bourse Weekly Performance (Week-ended 5^th July 2013)

	Week-ended 28th June 2013	Week-ended 5th July 2013
All Share Price Index	6,121.01	6,048.18
S&P SL20 Index	3,431.74	3,383.46
Total Turnover for the week (Rs.)	4,501,432,990/-	3,225,751,648/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	(1,026,617,344/-)	490,215,301/-
Market Capitalisation (Rs.)	2,350,744,338,432/-	2,322,779,865,088/-
Market PER	16.6	16.3

The early part of the week indicated that investors at the Colombo Stock Exchange were seen to be looking for direction, and the market indices reported marginal gains. However, the bourse, led by blue-chips such as John Keells Holdings, Carsons Cumberbatch, Aitken Spence Holdings, Sri Lanka Telecom and Cargills Ceylon lost ground, towards the latter part of the week.  Analysts pointed out that investor concerns over the weakening of the rupee, and worries that foreign outflows from government securities could spread to equities may have resulted in the growth in losses. Moody’s cut its credit rating outlook for Sri Lanka from positive to stable on Tuesday, also seem to be adding to the bearish sentiment. However, foreigners were seen to be net buyers throughout the week except on Tuesday.

Colombo Bourse made 1.19% losses, this week equivalent to Rs. 27.9Bn in Market Cap. The ASI and S&P lost a total of 72 and 48 points respectively. Turnover levels continued to be dull and significantly below the daily averages reported so far. The average daily turnover for 2013 is currently Rs. 1.04Bn, while the average daily turnover reported this week was Rs. 645.1Mn. Nearly 50% of the weekly turnover was contributed by the Banking Finance and Insurance sector where counters such as Commercial Bank, Nations Trust Bank, Sampath Bank and HNB traded heavily. Diversified Holdings (15%), Manufacturing (13%) and Motors (7%) sectors were the other significant contributors to the weekly turnover. All sector indices reported losses for the week except the Beverage Food & Tobacco, Motors and Information Technology. The highest loss was reported in the Plantations sector (-4.69%).

The bearish sentiments at the Colombo bourse have dragged its gains down drastically over the previous months. The bourse currently records a year to date gain of 7% with a trailing PER of 16.3X. The total gain in market cap for the year is Rs. 155Bn.