On Monday largest turnover was reported on NDB which closed up SLRs.4.00 at 354.50 with more than 1.1mn shares traded. Piramal Glass which was among the most actively traded stocks (25mn shares) closed up SLRs.1.20 (11%) at 12.10 making a significant contribution in terms of turnover. Nawaloka Hospital was highlighted as the most heavily traded for the day (62mn shares) of which majority was bought by Dr.Senthilverl for a total consideration of SLRs.225mn increasing his stake to 10.8%. Total turnover for the day reached SLRs.3.1bn and market closed in a negative not with ASPI and MPI losing 82.17 points and 13.55 points respectively.
Market plunged on Tuesday with ASPI losing 136.65 points and MPI by 82.51 points. Total turnover reached SLRs.1.9bn to which the largest contribution was made by 1mn shares of JKH which traded between SLRs.280.10 and 286.50 followed by Royal Ceramic and Lanka Tiles. Day’s most heavily traded Piramal Glass closed down at SLRs.11.90 posting over SLRs.90mn in turnover. Two consecutive days of sharp decline had a snowballing effect on indices bringing ASPI and MPI down by 102.45 points and 86.02 points respectively on Wednesday. Total turnover amounted to SLRs.2.3bn to which the largest contribution of SLRs.656mn was made by JKH which closed down SLRs.7.20 at 275.40 with more than 2.3mn shares traded. Royal Ceramics also made a significant contribution to day’s total turnover with approximately 1.6mn shares traded between SLRs.150.00 and 160.00 of which 1mn shares traded at SLRs.150.00 by way of a crossing while another 200,000 shares at 152.00.
The market that was oversold changed direction on Thursday with retail punters grabbing shares of fundamentally strong counters at absolute bargains. ASPI and MPI gained 40.47 points and 31.90 points respectively while total turnover reached SLRs.1.7bn. Lankem development which announced a 15 for 1 rights issue at SLRs.25.00 each closed up SLRs.16.40 (34.8%) at 63.50 being day’s top gainer posting the single largest turnover. Day’s most heavily traded (7.3mn shares) P C House made a significant contribution to turnover while the share closed up 80 cents at SLRs.18.50.
On Friday both ASPI and MPI declined by 70.90 points and 57.08 points respectively and sluggish market conditions were witnessed with day’s total turnover limited to SLRs.951mn, dropping below the SLRs.1bn mark for the first time in 2011. Approximately 2.8mn shares of York Arcade actively traded during the day between SLRs.37.50 and 44.70 posting day’s largest turnover and closed up 11.3% at SLRs.40.30.
Despite the slight rise in inflation the central bank kept policy rates unchanged and the Treasury Bill yields remained low at the last auction. Inflation is expected to ease when food supplies start coming from areas affected by recent floods. Hence investors should not have any fear regarding the possibility of any immediate increase in interest rates.
According to technical analysis ASPI is heading towards the oversold region, while the MPI is already oversold. Thus this is an ideal time for investors to accumulate fundamentally strong shares as the market is expected to surge with excess liquidity tied up in the recent Initial Public Offer being released back to the market in the coming week.