The weekly trades were dominated by retailers soughting for speculative counters while institutions adopting a strategy of accumulating fundamentally sound stocks which are currently trading with substantial discounts.
However, the week closed showing a slight revival in both the indices and registering a mere net inflow during Fridays trading.
The benchmark All Share Index dipped 84.7 points WoW to close at 6,698.8 points (-1.2%), whilst the more liquid Milanka Price Index also dipped 67.0 points WoW to close at 5,978.1 points (-1.1%). The All Share Index dipped mainly on the back of the losses made by Lanka Orix Leasing (-7.1% WoW), Commercial Bank of Ceylon (-3.4% WoW), John Keells Holdings (-1.7% WoW), Bukit Darah (-1.9% WoW), Trans Asia (-8.9% WoW) and Singer Sri Lanka (-6.4% WoW).
The Colombo bourse entered a fresh month further dragging down indices, concluding a very volatile month of September breaking the history of super September.
The month of September has been historically known as CSE’s best, but this year bourse failed to meets with its historical trend. Nevertheless, CSE still remains as the Asia’s best performing frontier market with a year to date growth of 0.9%, being aided through favourable macroeconomic settings. This is in contrast to sharp plunges by other Asian bourses such as Bangladesh (down 28%), Hong Kong (down 22%), India (down 19%), and Singapore (down 18%).
The market recorded an average daily turnover of LKR1.8bn over the past week, together with an average daily volume of 80.4mn.
Laugfs Gas (Voting) topped the turnover list for the week on the back of high net worth and institutional investor drive, delivering a convincing 22% price appreciation. This has contributed almost 11% to the weekly total turnover, being carried away by the positive prospects to the company via the explored gas deposit in Mannar basin. The second most active stock for the week was Regnis (Lanka), which has attracted a significant retailer and high net worth interest to close with a WoW price gain of 12.5%. Similarly, retailer favourite E-Channelling also contributed heavily to the weekly trades which also became the highest volume traded counter for the week covering almost 16% of the weekly volume.
More significantly, the heavy weight John Keells Holdings gave a convincing contribution being aided by institutional investors, even though concluded with a marginal WoW price dip of 1.7%. Furthermore, representing the motor sector prospects, Colonial Motors appeared amongst high contributors for the week, yielding a price gain of 6%.
Apart from the above, high volume contributors for the week were E-Channelling, Blue Diamonds (Non Voting), Panasian Power, LAUGFS GAS (Voting) and Ceylon & Foreign Trades.
During the week, Peoples Leasing Company, the largest leasing company in Sri Lanka officially announced their IPO to raise capital amounting to LKR7.02 billion.
The week saw a net foreign outflow of LKR380.5mn where foreign purchases amounted to LKR746.4mn Whilst, foreign sales amounted to LKR1,126.9 mn.