marginally above 5,000 mark on Friday. Monday
indices started to reverse after the bizarre behavior
in the previous week. JKH contributed mostly to the
market turnover on Monday. Tuesday price began to
fall further while foreigners buying was witnessed
pertaining to LION. The sharpest fall in indices was
witnessed in Wednesday, after the SEC released their
future restricting rules to media. However, the free
fall was ceased with bargain hunters entered to
collect the blue chips at discounted prices. The
negative sentiment continued with low volumes until
the end of the week.
Six crossings were recorded during the week, while
JKH took care of three of them. (600,000 shares at
LKR 198; 657,912 shares at LKR 200; 100,000 shares
at LKR 202). DFCC recorded two crossings of
1,000,000 shares at LKR 120 while LION made a one
crossing of 125,000 shares at LKR 225.
Diversified sector contributed mostly to the market
turnover while none of the sector indices could make
gains during the week.
As we expected during last week, the indices could
not continue the positive trend in the light of
lackluster investor participation. However,
foreigners continued to accumulate selected
counters at discounted prices.
Rupee depreciated slightly while the backstage of the
market got active with SEC 's proposed rules to
restrict market intermediaries from trading to a
certain extent. However, in our view, we believe the
said rules have both positive and negative effects on
the bourse. Even though the liquidity might get
negatively affected in the short run, the stability of
the control will strengthen from the proposed rules.
Continuous participation of the foreigners is the only
positive sign in the bourse currently