Indices sustain at high levels

Acuity Stockbrokers Research in their weekly Market Review indicated that as expected by us last week market continued its positive momentum this week with both All Share Price Index (ASPI) and Milanka Price Index (MPI) gaining ground from last week’s closing levels. Indices were trading within a marginal range during the first four days before breaking the trend on Friday, showing a modest gain.

This week the ASPI gained 39.1 points or 1.0% to close at 3807.9 points while the more sensitive Milanka Price Index (MPI) gained 11.0 points or 0.25% to close at 4354.0 points.

Aitken Spence (SPEN) contributed Rs.310.2 million to the total market activity this week after trading 0.2 million shares in volume, becoming the largest contributor for the week. SPEN edged higher to close the week at Rs.1300.00 per share compared to last week’s closing price of Rs.1299.75 per share, whilst trading between a price band of Rs.1270.00 & Rs.1310.00 per share over the week’s trading.

The banking counter HNB meanwhile saw 1.3 million shares changing hands for the week with its share price showing a 1.0% decline to close the week at Rs.178.00 per share. The stock during the week traded at a highest price of Rs.179.50 and a lowest of Rs.175.00 per share. The Rs.5.00 Final dividend announcement on HNB caused interest on HNB whilst its contribution towards the weekly turnover amounted to Rs.231.8 million

Richard Pieris (RICH) traded between a price range of Rs.68.75 and Rs.62.50 per share during the week before closing up 3.7% on Friday at Rs.65.50 per share. The total volume of RICH shares traded amounted to 3.5 million, whilst managing to contribute Rs.228.8 million towards weekly turnover, becoming the 3rd largest contributor for the week.

Renewed interest was seen on HNB Assurance (HASU) counter with approximately 4.2 million shares changing hands during the week with bulk coming on Tuesday supported by a major crossing. The stock gained during the week by 2.0% to close at Rs.50.50 and contributed a turnover of Rs.212.0 million for the week.

Total market turnover during the week amounted to Rs.4.7 billion, showing a 30.9% decline over last week’s Rs.6.9 billion. The week’s average daily turnover stood at Rs.950.4 million compared to last week’s Rs.1.4 billion.

Foreign sales were heavier during the week resulting in a net foreign outflow of Rs.289.1 million. Foreign purchases for the week stood at Rs.388.1 million down by 56.4% while foreign sales amounted to Rs.677.2 million, showing a WoW dip of 49.2%. Foreign investors were less active during the week with their participation amounting to 11.2% for the week.

The most heavily traded stocks for the week were Nawaloka, Reefcomber, Janashkthi Insurance and Seylan Bank (Non Voting).

In their point of view ASR indicated that the week ended 26.02.10 saw 198 listed companies (on a cumulative basis, considering the past few weeks) releasing Dec’ quarter earnings. Hence, 33 more companies are yet to release the Dec’ quarter results. Also, it is noted that out of the 196 companies that sent out the earnings results, 93 companies (46.97% of the new earnings releases) recorded at least 20% or more earnings growth for the 12 month ended or 9 months ended periods.

However, with 33 more companies yet to send the earnings during the next week, acuity feels that the market would remain on a positive note based on positive earnings expectations. With the complete earnings (hopefully) by next week Acuity should be able to calculate the market trailing price to earnings and the sector price to earnings ratios respectively.

- Asian Tribune -