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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2642

Investors optimistic of the visit of peace envoy

By Quintus Perera - Asian Tribune

Colombo, 01 August, ( Upward trend continues as penny stocks Dominate, while investors to remain optimistic ahead of peace envoy's visit, the HNB Stockbrokers reveal on the analysis of stock market trends.

The growth momentum was far less this week than what was witnessed last week, though the market retained an upward trend this week. The All Share Price Index (ASPI) rose by 39.1 points comparing Week on Week (WoW), while during last week the index managed to rise by 67.7 points.

The Milanka Price Index (MPI) meanwhile improved by 51.8 points this week, compared to an 85.6 point rise witnessed last week. It is interesting to note that the market has so far risen for two consecutive weeks, with even daily movements being on an upward trend. On Friday the ASPI closed at 2226.6 points, while the MPI closed at 2856.2 points.

Dockyard remained the highest contributor towards turnover this week, contributing Rs.355.3 million towards weekly turnover. The major portion of the contributions came on Friday with 13.9 million shares trading as a foreign to foreign crossing at a price of Rs.25.50 per share. The counter closed at Rs.25.25 per share on Friday showing a slight one percent increase in share price WoW.

Nawaloka took centre stage this week, amid speculative trades driving the share price by a significant 23.1percent compared to last week. During the week the stock traded at a high of Rs.4.90 per share, however prices slipped amid the Exchange halting the trade of the stock on Thursday for a short time. The halting saw investor sentiments dampen, resulting in the share price falling by 19.5 percent Thursday. Approximately 70 million of Nawaloka shares traded, making it the highest traded stock for the week, while the counter was the second highest contributor towards turnover contributing Rs.275.2 million.

Another penny stock, Vanik Incorporated also experienced a halting of trade this week on Thursday. Vanik had observed renewed interest for the past couple of weeks, while speculation of a change of management has been driving the share price of the stock. During the week Vanik shares traded at a high of Rs.5.25 per share, while subsequent to the halting of trade, share prices fell by 12.2 on Thursday. The counter contributed a notable Rs.223.7 million towards weekly turnover, while 51.4 million of shares traded during the week.

On Friday the share closed at a price of Rs.4.30 per share, up by a sizable 19.4 percent WoW. Vanik Incorporated (none voting ) shares was the top gainer this week with the share price improving by a significant 66.7 percent compared to last week. A notable 22 million of none voting shares traded this week, with the counter closing the week at Rs.4 per share.

Banking counter Nations Trust observed renewed interest amid 4.3 million of its shares being traded on Wednesday. The major part of 4.17 million shares was traded at a price of Rs.22 per share and was reportedly bought by high net worth investor Dr.Senthilvel. The counter managed to contribute Rs.105.1 million towards weekly turnover with 4.8 million of its shares trading during the week. The share price witnessed a modest 5.7 percent increase to close the week at Rs.23 per share, while trading within the range of Rs.23.50 and Rs.21.25 per share.

The week saw market heavy weights Dialog, JKH and HNB announcing their quarterly results, with strong performance being witnessed in the counters. While Dialog and HNB witnessed a modest share price increase of 5 percent and 6.4 percent respectively, with relatively low quantities of both shares trading. JKH witnessed a slight 1.3 percent dip in share price. This seemed to emphasize the current market sentiment, which have been skewed towards low value counters, with heavy retail participation.

Turnover for the week witnessed a 25.2percent dip this week, amid the absence of large trades in the likes of what was witnessed last week. The total turnover for the week amounted to Rs.1.9 billion, while the average daily turnover remained moderate at Rs.381.1 million this week. Foreign participation improved this week to 24.6 percent of total activity, with the Dockyard trade on Friday boosting participation levels.

Both foreign purchases and foreign sales were impacted by the trade, which contributed Rs.354 million. Foreign sales for the week amounted to Rs.472.3 million, while foreign sales totaled Rs.467 million. The resultant net foreign inflow was a low Rs.5.3 million for the week.

Amongst the heavily traded stocks this week were, Nawaloka, Vanik Incorporated, Vanik Incorporated (Non Voting), Asiri Surgical and Dockyard.

- Asian Tribune -

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