LBT: Market Friday

[GMNet]

2012 Kicks Off Red...........
The Colombo Bourse concluded its first trading week for the year 2012 with both indices shedding further, extending the long prevailed sluggish momentum driven by lack of confidence over the market. The All Share Index dipped 144.0 points WoW to close at 5,930.5 points (-2.4%), whilst the Milanka Price Index also shedding by 146.0 points WoW to close at 5,083.1 points (-2.8%). Indices benefitted mainly on the back of losses made by Aitken Spence (-9.1% WoW), Dialog Axiata (-5.1% WoW), Cargills Ceylon (-5.7% WoW), Lanka Orix Leasing Company (-6.5% WoW), John Keells Holdings (-1.8% WoW), Environmental Resources Investments (-20.0% WoW) & Vallibel One Limited (-7.9% WoW).

Activities in the market were relatively low with thin volumes and turnover levels driven by a mix of institutional, high net worth and retail interest. The average daily turnover for the week had been LKR387.5 mn with an average weekly volume of 19 mn. Further, the week saw a decline of circa 2.1% in overall market capitalization together with a Year to date return of negative 2.4%.

The top traded counter for the week is John Keells Holdings, contributing a bulk of 17% to the weekly total turnover, indicating that institutional and high net worth investors are accumulating the stock at prevailing discounted prices in the light of future growth prospects.

Secondly, it was evident that heavy speculative trading was on Environmental Resources Investments closing the share with a price dip of 20% WoW, giving a high impact on the indices with a loss of LKR2.5 bn in market capitalization. Heavy foreign selling pressure on Commercial Bank of Ceylon has also added on to increase the weekly turnover. Meanwhile, heavy interest was seen on the new entrant to the bourse, Waskaduwa Beach Resort.

During the week Kalpitiya Beach Resort and Waskaduwa Beach Resort got listed on the Diri Savi Board under the Hotels and Travel sector. Kalpitiya Beach Resort issue opened at LKR19.00 to close at LKR17.00 at the initial day of trading. At the same time Waskaduwa Beach Resort opened at LKR13.50 to close at LKR14.00.

Apart from the above, in the midst of booming tourism sector, LOLC Leisure Limited made a strategic move to acquire Dikwella Resort Limited for a consideration of LKR1, 014 mn. In the economic context the call market rates stabilised in the face on Central Bank’s open market interventions. Furthermore, Seylan Merchant Bank (Non Voting), Waskaduwa Beach Resort, Environmental Resources Investments and Free Lanka Capital Holdings topped the list in terms of volume during the week.

The week saw a net foreign outflow of LKR154.4 mn where foreign purchases amounted to LKR 308.7mn whilst foreign sales amounted to LKR463.1 mn.

Market capitalization stood at LKR2, 166.6 bn, nevertheless the YTD performance closed at -2.4%.

[Kumar]

Thanks a lot.

[godswen]

Hi Jeewa! Put ur top button on man! :/ ROFL!

Btw how the bourse going to gain momentum in the upcoming week? Due to which announcement you said? :/ SEC is it?

P.S I thought it's going to be that same girl in the video! :/

[kaka]

Hi Jeewa! Put ur top button on man! :/ ROFL!

Btw how the bourse going to gain momentum in the upcoming week? Due to which announcement you said? :/ SEC is it?

P.S I thought it's going to be that same girl in the video! :/