Investors book premature profits
During the week the All Share Price Index (ASPI) declined by 88.04 points to close at 6,219.39 while the S&P SL20 declined 91.99 points to close at 3,504.35. The daily average turnover was Rs.640mn compared to Rs.971mn reported during the previous week, and the week ended with foreign buying amounting to Rs.1.11bn whilst foreign selling was only Rs.683mn.
Market closed on a mixed note on Monday; ASPI gained 33.85 and the S&P SL20 dipped 21.89 points. Total turnover for the day was Rs.826mn with majority generated by foreign purchases. The single largest turnover for the day amounted to Rs.295mn that was posted by Cargills where 1.64mn shares traded at Rs.180.00 by way of crossings. Nation Lanka (CSF) also made a significant contribution of Rs.117mn with more than 9.8mn shares traded between Rs.11.30 and 12.00. JKH which declined over the past week bounced back Rs.7.80 to close at Rs.272.80 posting the day’s third largest turnover.
Total turnover on Tuesday amounted to Rs.750mn while the market declined with indices losing 37.58 and 14.05 points on ASPI and the MPI. JKH made further gains to close up Rs.2.20 at 275.00, and posted the day’s largest turnover of Rs.144mn. 1mn shares of United Motors (UML) traded at Rs.119 by way of a crossing that made the second largest turnover contribution for the day. This was followed by Sampath Bank posting Rs.110mn in turnover with the share closing down 20 cents at Rs.217.00.
On Wednesday Sampath Bank posted Rs.176.00mn in turnover; the single larg- est contribution for the day’s total turnover which was a mere Rs.566mn. Commercial Bank closed up marginally and posted the day’s second largest turnover. MTD Walkers (KAPI) closed up Rs.4.00 (14%) at 31.80and made a relatively important contribution to the day’s turnover. Indices slipped marginally; ASPI by 18.94 and S&P SL20 by 8.99 points.
On Thursday the bourse reported a precipitous fall with ASPI losing 76.89 points and the S&P SL20 losing 52.32 points on thin volumes with total turnover limited to Rs.480mn. Commercial Bank poste the day;’s largest turnover of RS.105mn though the share closed down Rs.3.00 at 116.90. Approximately 4.3mn shares of Soflogic Holdings traded between Rs.9.80 and 10.60 and closed down 80 cents (7%) at Rs.9.90. Index heavy blue chip companies such as JKH, NDB and Chevron, closed down between 2% to 3% on very thin volumes that significantly hampered indices.
Treasury bill yields continued to decline during this week’s auction and the Central Bank have asked commercial banks to cut interest charged on credit card advances by 4%. Thus both lending and deposit rates are bound to further decline in the short term that would give a boost to the stock market.