Market revives on UNHRC resolution outcome

During the week the All Share Price Index (ASPI) declined 26.72 points to close at 5,422.33 points, while the Milanka Price Index (MPI) declined 16.39 points to close at 4,847.86points. The daily average turnover was Slrs.1,083mn compared to SLR.3,643MN last week and the week ended with foreign buying amounting to Slrs.3,331mn whilst foreign selling was Slrs.937mn.

On Monday the largest turnover of Slrs.2.37bn was posted from Aitken Spence Holdings PLC where20.56mn shares traded of which 20.53mn shares traded at SLRS.115 by way of three crossings that was bought by the Aberdeen Fund for Slrs.2.36bn while the seller was the Employees Provident Fund (EPF). JKH posted the day’s second largest turnover with the share closing up SLRS.4.90 at 200.00 with approximately 2.1mn shares actively traded, including a transaction of 1.5mn shares done at SLRS.200.00 by way of a crossing. Total turnover for the day amounted to Slrs.3.1bn while the Indices remained more or less flat with ASPI and MPI reporting marginal gains of 0.41 points and 24.83 points respectively.

On Tuesday the market closed on a subdued note with both indices recording losses. Both ASPI and MPI closed down 35.44 points and 13.16 points respectively. Total turnover for the day amounted to a modest Slrs.627mn to which JKH made the largest contribution of Slrs.194mn, which included two crossings totalling to 495,000 shares done at SLRS.200.00. The Counter closed flat at SLRS.200.00 with a total of 971,371 shares traded during the day. Commercial Bank reported the day’s second largest turnover of Slrs.55mn with 553,574 shares traded between SLRS.99.50 and SLRS.100.10.

On Wednesday the market remained sluggish with low level of activity with indices reporting moderate losses. ASPI declined by 29.92 points while the more liquid MPI closed down 54.05 mainly led by the heavy weight JKH losing SLRS.5.00 to close at 195.00. Total turnover for the day amounted to SLRS.376 million to which the largest contribution was made by Lanka Wall Tiles (LWL) where 500,000 shares traded at SLRS.75.00 by way of an off-market deal, while the share closed down Rs.5.10 (6.5%) at SLRS.73.80 on thin volume. Commercial Bank posted the day’s second largest turnover with 293,880 shares traded while closed flat at SLRS.100.00.

Indices slipped further down on Thursday while turnover amounted to a modest SLRS.354 million. JKH reported the day’s largest turnover that was limited to SLRS.51 million with 266,937 shares traded while the counter closed down 1.6%. Retail participation remained extremely low while long term investors continued bargain hunting of fundamentally strong shares on low volumes. 298,529 shares of Commercial Bank traded during the day and the counter reported the day’s second largest turnover of SLRS.30 million followed by Seylan Bank posting SLRS.22 million in turnover. ASPI closed down 34.40 points while MPI closed down by 41.05 points.

On Friday the Colombo bourse reported significant gains after the Us-sponsored resolution regarding Sri Lanka being passed at the United Nations Human Rights Council (UNHRC) as investors realized what the government has to do is mainly to implement the LLRC report which the government prepared and declared that it would in any case implement. ASPI and MPI closed up 72.63 points and 67.04 points respectively while the day’s total turnover reached Slrs.927mn. JKH closed up SLRS.3.70 at 194.80 and posted the day’s single largest turnover of Slrs.400mn including two off market deals done at SLRS.191.50. Blue Diamond Jewellery posted the day’s second largest turnover with 9.9mn shares traded of which approximately 8mn traded at SLRS.8.00 by way of a crossing, while the share closed at SLRS.6.20. There was interest on Environmental Resources share and its warrants, the share closed up 11% at SLRS.16.80 while its warrants 3 and 6 closed up 22% and 25% respectively to close at SLRS.6.60.

Technically the market is capable of staging another bull run as the ASPI crosses the 5,500 mark triggering buy signals on both indices.