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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2584

Indices down despite improved retail activity

By Quintus Perera – Asian Tribune

HNB Stockbrokers in their weekly review indicated that the negative sentiment continued this week, as investors remained cautious over the mixed corporate earnings. The All Share Price Index (ASPI) shed 34.8 points or 1.41 percent to close at 2431.8 points while the more sensitive Milanka Price Index (MPI) lost 91.4 points or 3.12 percent to 2840.4 at week’s close. The fall in indices came in the back of a notable drop in the share price of the index heavyweight telecom giant Dialog, after the release of its disappointing 2nd quarter earnings on Wednesday.

Speculative trading on Hotel Developers (HDEV) helped counter in becoming the largest turnover generator for the week amounting to Rs.85.1 million. The share price of HDEV shot up by a substantial 54.6 percent Week on Week (WoW) to close at Rs.68.00 per share, topping the list for highest gainers of the week. The counter during the week fluctuated in a wide price range of Rs.88.75 (highest) and Rs.44.00 (lowest) per share. The total number of HDEV shares traded for the week amounted to 1.2 million.

Interest on United Motors continued with counter generating the 2nd highest contribution towards the weekly turnover. The share closed up by a notable 33.8 percent WoW at Rs.89.00 per share standing 2nd in terms of top gainers for the week. Approximately 0.87 million shares of United Motors traded adding closer to Rs.73.0 million towards weekly turnover.

Distilleries managed to remain under investor focus for yet another week with a trade volume of 0.73 million during the week. Interest on Distilleries lead the counter towards generating a contribution of Rs.63.4 million for the week with the bulk of the activity coming on Tuesday. The counter ended the week 2.8 percent lower at Rs.86.00, while having being traded between a price range of Rs.85.25 & 87.25 per share.

The blue chip JKH saw over 0.56 million of its shares changing hands during the week becoming the 4th largest contributor with a turnover of Rs.57.6 million. However the JKH share price witnessed a 4.2 percent WoW decline to close at Rs.102.00 per share on Friday after being traded between the prices of Rs.102 & Rs.108.

The overall market turnover which was driven mainly by retail activity remained low during the week dropping by 59.1 percent to Rs.1.04 billion compared to Rs.2.54 recorded last week, while the average daily turnover amounted to Rs.207.62 million for the week as against Rs.507.44 posted during the week before.

Foreign participation this week declined significantly to 19.1 percent from 57 percent recorded last week. Foreign sales this week outpaced total foreign buying resulting in a Rs.92.6 million net foreign outflow for the week. Total foreign buying for the week stood at Rs.152.1 million, down 90.1 percent while foreign sales totaled to Rs.244.7 million, declining by 85 percent compared to last week.

The most actively traded stocks for the week were Sierra, Tess Agro, Vallibel and Seylan Merchant (Non Voting)

Meanwhile in their point of view HNB Stockbrokers indicated that indices headed south during the week as high cap Dialog lost ground in the back of lower than expected financial performance. However the retail participation improved this week amidst speculative trading, resulting the activity levels to remain modest.

During the week All Share Price Index (ASPI) fell by 34.8 points while Milanka Price Index (MPI) lost 91.4 points compared to last week.

HNB Stockbrokers expect retail investors to stay active in the marketplace as speculative trading likely to exist over the coming week. However considering high risk involved, they advise investors to be cautious and not to chase too aggressively behind these rumor driven counters.

- Asian Tribune -

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