Sri Lanka: Stocks close out solid in 2009

Acuity Stockbrokers (Pvt) Ltd in their weekly market review indicated that the indices edged higher for the fifth straight week with the broader All Share Price Index(ASPI) hitting fresh closing highs in the history of the Colombo bourse on Wednesday, to close at 3385.6 points. However, volume levels remained light during the holiday thinned three day week, as the week was headed for New Year holidays.

The ASPI gained a modest 92.8 points or 2.8% to end at 3385.6 points while the Milanka Price Index (MPI) inched up 72.1 points or 1.9% points to 3849.4 points.

Investors continued to sought after blue chip stocks as banks led the way, while HNB topped the list of the contributors. Being in line with the improving market trend HNB, share price gained by 1.0% this week, closing at Rs.170.25 per share. During the week approximately 1.9 million HNB shares traded, while becoming the highest daily contributor on all three days. Counter in total contributed Rs.311.3 million or 16% of total turnover during the week.

Conglomerate JKH placed second in terms of activity levels for the week. It added over Rs.122.0 million to the week’s turnover, while trading a volume of 0.7 million shares. JKH saw its share price increase by 0.7% Week on Week (WoW) to close at Rs.171.50 per share on Wednesday.

Renewed interest was seen on Lion Brewery stock which saw approximately 1.0 million shares trading for the week, contributing Rs.81.4 million to the week’s turnover. The share price of the counter gained during
the week by a notable 12.4% to close at Rs.81.50 per share.

Total activity levels reduced by 57.9% during the holiday shortened trading week to total Rs.1.9 billion this week while the average daily turnover amounted to Rs.649.8 million. The week witnessed heavy participation of local investors while foreign participation of total activity stood at a low of 19.8%. Foreign investors remained net sellers this week, amounting to a net outflow of Rs.309.0 million for the week.

Dialog, Tokyo Cement (Non Voting), City Housing and Keells Hotels were among the most actively traded stocks during the week.

ASL in their point of view indicated that the week ended 30/12/2009 saw the ASPI moving from 3292.8 points to 3385.6 points amounting to 92.8 points while the MPI moving from 3777.2 points to 3849.4 points amounting to 72.1 points.

As explained above, the bourse showed an uptrend during the concluded three day week. The continuous climb of the market during the past few weeks has created a favorable outlook on the market, despite the expectations of a seasonal “lull”.

With the trading concluding for the year, the positive sentiments are expected to continue with the expectations of an improvement in the corporate earnings stemming from an all dreamt economic revival.

- Asian Tribune -