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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2740

Markets end in the green for 8th week

By Quintus Perera – Asian Tribune

In their weekly review HNB Stockbrokers indicated that the week, market ended high continuing its positive trend for the continuous 8th week in a row. Speculative trading on few selective stocks mainly drove the market indices up this week. The All Share Price Index (ASPI) moved 34.9 points higher, or 1.38 percent to 2565.8 points while the liquid Milanka Price Index (MPI) edged up 43.1 points or 1.36 percent to 3215.3 points to close the week on a positive note.

The telecom counter SLT, subjected to speculation, witnessed 6.45 million shares changing hands accounting for the largest turnover by a single stock of Rs.232.8 million for the week. During the week SLT share price was up by Rs.2 to Rs.36.50 per share, showing a WoW
price appreciation of 5.8 percent. SLT, which also became the 3rd largest in terms of volume traded for the week, fluctuated within a price band of Rs.34.25 & Rs.37.25 per share.

Interest on the blue chip JKH remained, with approximately 1.1 million of its shares trading this week, contributing approximately Rs.132.54 million towards the week’s turnover. The counter WoW showed a slight gain in price of 0.63 percent compared to last week, to close at Rs.120.25 per share this week. The majority of JKH turnover was seen materializing on Tuesday.

Investor interest was also seen in York Arcade, which during the week traded a total volume of 4.9 million shares to generate a turnover of Rs.79.54 million. The counter before closing at Rs.16 per share traded at a high of Rs.17.50 and a low of Rs.13.25 per share observing an impressive 10.3 percent increase in the share rice.

Revived interest on Touchwood made the stock to become one of the top contributors over the week. 0.7 million of Touchwood shares were traded during the week adding up a total value of Rs.74.2 million to the weekly turnover. The counter meanwhile witnessed its share price surge by Rs.10.5 or 11.5 percent to Rs.101.75 per share, at week’s close. Market activity this week amounted to Rs.1.4 billion, declining 55.9 percent against last week’s level. Being a four-day trading week the average daily turnover for the eek stood at Rs.357.2 million.

Foreign investors remained net buyers for the week amounting to Rs.150 million. Foreign purchases for the week stood at Rs.438.1 million, while foreign sales totaled to Rs.288.1 million. The foreign participation for the week was at a low of 25.4 percent of total activity, compared to a participation level of 37 percent posted last week. Seylan Merchant, Sierra Cable, SLT and York Arcade were the most heavily traded stocks for the week.

Meanwhile in their point of view HNB Stockbrokers indicated that the market continued to maintain its positive momentum on healthy volumes with stocks such as SLT, LCEM gaining investor attraction. Both foreign as well as domestic retail investors were seen active during the week. Overall the All Share Price Index (ASPI) gained 36.9 points during the week while the sensitive Milanka Price Index (MPI) notched up 45.7 points compared to last weeks closing level.

They do not expect a major shift in the existing trend in the market place, thus the positive sentiment is likely to continue with noteworthy activity levels. Furthermore the investor interest on the plantation counters subsided on the back of profit taking, however we believe that the plantation earnings would continue to be strong during the first quarter of this calendar year as a result of high tea and rubber prices. Therefore we advise investors to accumulate plantation counters if the prices fall back to attractive levels.

- Asian Tribune -

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