The Bourse Weekly Performance (Week-ended 6th September 2013)

The Bourse Weekly Performance (Week-ended 6^th September 2013)

	Week-ended 30th August 2013	Week-ended 6th September 2013
All Share Price Index	5,834.04	5,672.64
S&P SL20 Index	3,261.33	3,177.17
Total Turnover for the week (Rs.)	2,427,574,218/-	1,728,463,487/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	186,063,267/-	(36,876,254/-)
Market Capitalisation (Rs.)	2,402,882,748,421/-	2,336,407,641,240/-
Market PER	16.59	16.13

The bourse has reached its 6 month low figures with investor blues continuing to weigh down the sentiments in the market. The ASI has reached its year opening figures with year to date gains near 0.5% while the S&P managed to generate year to date gains of 2%. The change in market capitalization for the year has been Rs.168 Billion a growth of 7.79%. Turnover levels declined by 29% while the average daily turnover for the year dropped to Rs.889 Million. This week’s performance resulted in the ASI and S&P losing 161 and 84 points respectively, equivalent to a decline of over 2%.

Foreigners were seen to be exiting the Colombo bourse with net sales of Rs.36 Million. The net foreign inflow for the year declined to Rs. 18.5 Billion this week. Bloomberg reports indicated that Asia Pacific markets have picked up momentum this week for the first time in 9 months. However, the report went on to point out that stock exchanges in emerging markets continue to experience foreign outflows, as investors are opting out of the market for less riskier investments ahead of the expected tapering of stimulus by the US Federal Reserve given the improvements seen in the US economy. The report quotes “Speculation the Federal Open Market Committee (FOMC) will dial down purchases at its Sept. 17-18 meeting has roiled markets, pushing up U.S. bond yields and contributing to the worst rout in the currencies of developing nations in five years”.

In highest contribution for the weekly turnover came in from the Diversified Holdings sector with considerable trading in JKH followed by the Banking Finance and Insurance sector. All sectors recorded negative returns for the week while the largest drop was indicated in the Stores & Supply sector which lost 11% in index value. The Colombo bourse currently trades in the over sold territory with a 14-day Relative Strength Index of 25.69. However, experts comment that adverse effects in emerging markets with the changing global market conditions may put pressure on the domestic currency and interest rates, which is likely to result in the Colombo bourse experiencing these bearish sentiments in to the future.

The Bourse Weekly Performance (Week-ended 30th August 2013)

The Bourse Weekly Performance (Week-ended 30^th August 2013)

	Week-ended 23rd August 2013	Week-ended 30th August 2013
All Share Price Index	5,951.83	5,834.04
S&P SL20 Index	3,342.96	3,261.33
Total Turnover for the week (Rs.)	3,715,349,258/-	2,427,574,218/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	1,021,289,824/-	186,063,267/-
Market Capitalisation (Rs.)	2,451,390,332,928/-	2,402,882,748,421/-
Market PER	16.90	16.59

The Colombo bourse fell drastically this week and reached its near 5 month-low figures. The ASPI reached its lowest for the week on Wednesday 5753 a figure last seen on 4^th April 2013. This week saw the LKR reach its all time low levels which was considered as the main cause for the dipping bourse. Market heavy weight JKH, was seen dragging the bourse to low levels even though it announced a mega rights issue inclusive of warrants to finance plan the biggest-ever private sector project of US$650 Million.

The market performance saw the ASI and S&P indices losing a total of 117 and 81 points respectively, while the loss was equivalent to Rs.48 Billion in market capitalization. However, turnover remained 35% lower than previous week while the average daily turnover for the week was recorded at Rs.485 Million (the average daily turnover for the year is Rs.906 Million). Highest contributors for the weekly turnover were counters such as JKH, Sampath Bank, Commercial Bank, NDB, Distilleries, etc which were seen to be heavily traded. In sector statistics, the highest contribution for the weekly turnover came in from the Banking Finance and Insurance and Diversified Holdings sectors. The week saw JKH share price dropping over 11% to close at 214, which also resulted in the Diversified Holdings sector index reporting the highest loss for the week. The biggest gainer this week was the Information Technology sector.

Reuters reports indicate that though there are concerns over the US policy on Syria, the dollar continues to grow stronger, while Bloomberg reported that, Derivatives traders are expecting Federal Reserve to reduce stimulus as soon as next month. The dramatic world markets and the uncertainty of the domestic currency led foreigners to be net sellers during mid week with a notable amount of foreign outflows. However, the situation is seen to be common to most South Asian markets, and MSCI index indicate that the Colombo bourse has out-performed the South Asian market index which records a month to date yield of -9.91% as opposed to the -3.37% recorded at the Colombo bourse. Year to date the Colombo bourse still generate gains of 3.39% as opposed to a -10.89% in the South Asian index. The 14 day RSI is 33.54 suggesting a near over sold situation where the losses generated at the bourse is greater than the gains.

The Bourse Weekly Performance (Week-ended 23rd August 2013)

The Bourse Weekly Performance (Week-ended 23^rd August 2013)

	Week-ended 16th August 2013	Week-ended 23rd August 2013
All Share Price Index	6,233.21	5,951.83
S&P SL20 Index	3,491.55	3,342.96
Total Turnover for the week (Rs.)	3,964,732,407/-	3,715,349,258/-
Total Net Foreign Inflow/ (Outflow) (Rs.)	988,800,070/-	1,021,289,824/-
Market Capitalisation (Rs.)	2,567,268,096,981/-	2,451,390,332,928/-
Market PER	17.65	16.90

Investor sentiments were dented this week at the Colombo bourse due to concerns over rupee volatility and earning fears as pointed out by many analysts. The total market declined 4.51% in ASPI and in market cap. The ASPI fell and closed below the psychological threshold of 6000 points on the last trading day of the week.

Net foreign buying for the year surpassed Rs. 18 Million this week. Foreign interest was seen in Banking Finance and Insurance sector counters such as Sampath Bank, Commercial Bank, HNB, Diversified Holdings sector counters such as JKH, SPEN along with CTC. These two favorite sectors together contributed for 87% of the weekly turnover which was en par with the turnover generated the previous week. This week the Colombo bourse maintained its average daily turnover of Rs. 920 Million. All sectors recorded losses for the week except the Information Technology and Oil Palms sectors while the biggest loser for the week was the Beverage Food and Tobacco sector as CTC closed 18.5% lower than its close for the previous week.

Experts explain the changing global conditions in the world economy are a significant contributor to the negativity building up at the bourse. Reuters reported that the US bond yields were seen to be rising backed by tapering of the US stimulation programme soon creating an appetite to buy US assets. Reports indicated that most Asian stock markets and currencies are likely to be hit hard after the Fed Reserve policy meeting held Thursday. As suggested in reports, many Asian stock markets such as Jakarta, Comp (-8%), Straits Times (-3%), S&P CNX Nifty (-0.6%) were seen to decline this week fuelled by the rising dollar and US monetary policy changes. MSCI benchmark indices were all seen to be in the red, thus justifying the Rs. 115 Billion loss in market cap for the week at the Colombo bourse. CSE still managed to generate year to date gains which have now fallen to single digit figures, 5% in ASPI and 8% in market cap.