Investors in search of direction
single largest turnover of Rs.66mn followed by Dialog Axiata having posted Rs.40mn with more than 4.5mn shares traded. Bukit Darah also chipped in Rs.34mn in turnover while the total turnover was limited to Rs.292mn. Indices moved in opposite directions; ASPI declined 5.10 points and the S&P SL20 gained 12.02 points.
JKH continued to lead the turnover on Thursday posting Rs.60mn and the share closed down Rs.2.70 to close at Rs.267.00. Approximately 4.5mn shares of Dialog Axiata traded between Rs.8.60 and 8.80 posting the second largest turnover of Rs.40mn while the total turnover for the day amounted to Rs.290mn. Market dipped with ASPI and S&P SL20 declining 40.98 points and 24.63 points respectively.
On Friday the largest turnover of Rs.76was reported from Asiri Hospital Holdings where 5.4mn shares traded between Rs.13.80 and 14.40 of which 5mn traded at Rs.14 by way of a crossing. Sampath Bank closed up Rs.2.10 at 202.10 and posted the day’s second largest turnover of Rs.63mn. Approximately 2.2mn shares of Access Engineering traded between Rs.20.50 and 21.30 while closed up 50 cents at 21.00. Aitken Spence and Lanka IOC were also among the top five contributors in terms of turnover and the day’s total turnover reached Rs.404mn. Indices edged up during the day; ASPI by 13.61 points and the S&P SL20 by 4.39 points.
With inflation cooling down we can expect a cut in policy rates in September or October that would further reduce interest rates. Credit to the private sec- tor grew during the month of May which reflects the benefit of low interest rates that would spur economic growth. Foreign investors are already reaping the benefit of this anticipated growth; year to date net foreign buying is reaching Rs.17bn on top of Rs.38.7bn reported in 2012. Technically the market is in its neutral region with the market Relative Strength Index (RSI) being 43. Prudent investors would take advantage of the present price weakness in the market by picking fundamentally good shares at bargaining prices.