Amidst some resistance to rest above the 5,000 points over the past two days, bourse
finally managed to settle at its high of 5,059.3 points (up 61.2 points) today.
Yesterday’s release of the healthy economic growth numbers for 1Q2012, assisted to
uplift the investor confidence as the overall participatory levels showed
considerable improvement with turnover reaching LKR500 mn. Reactivation of retailers
in specific added to the improvement in the bourse’s activity levels. Both the
indices remained in the green throughout as nearly four shares gained for each one
that dropped. Index heavy; Cargills (Ceylon) (+5.3%), Hatton National Bank (+1.9),
Ceylon Tobacco (+0.8%), Access Engineering (+5.5%) & Asian Hotels & Properties
(+2.8%) were the biggest positive contributors to the index gains.
Sri Lankan equity, currently being the Asia’s worst performer, now ranks 4th in
terms of world’s least performing stock markets being just ahead of Greece with an
YTD dip of -16.7%. With the positive news flowing from the macroeconomic arena
coupled with the long prevailed bearish run which dragged the indices to a highly
competitive valuation platform amongst other emerging markets, we believe that the
Colombo bourse is all ready for a strong recovery provided interest and exchange
rates also gradually ease. We continue to remind the value hunters to stick to the
steady lot as we expect them to outrun the market in a recovery.
Strong renewed retail & high net worth play in speculative favourite, HVA Foods, led
the counter to lead the day’s turnover list with a circa 9.5% contribution. The
counter touched a high of LKR13.4, before closing at LKR12.8 with a gain of 18.6%.
Similar interest was evident in PC House and its related entity, PC Pharma, as both
the counters witnessed several large trades on board. PC House closed with a notable
14.5% gain at LKR7.0 today.
The day’s only crossing was recorded in conglomerate, Hayleys, as the counter saw a
block of 98.6k shares being dealt at LKR330.0 per share. Furthermore, accumulation
was observed in Commercial Bank of Ceylon, John Keells Holdings, Aitken Spence and
Vallibel One. Despite being attractively priced, selling pressure extended in
manufacturing sector player, Royal Ceramics, as the counter continued to trade on
its 52 – week low of LKR90.0. Nevertheless, some buying interest in the counter
during final hours of trading pushed the share to close with a 4.3% gain at LKR92.6,
still trading at a deep discount. Interest persisted in Carsons Cumberbatch whilst
Ramboda Falls, yesterday’s entrant to the bourse, saw active trading as it
appreciated a solid 36.5% to close at LKR32.8 (up 228% from its introductory price
European Stocks Climb For Third Day: European stocks climbed for a third day as
Group of 20 leaders debated the region’s financial crisis and Greek policy makers
continued talks to form a government. The Stoxx Europe 600 Index added 0.3% to
245.17 at 8:06 am. in London. Standard & Poor’s 500 Index futures increased less
than 0.1% today, while the MSCI Asia Pacific Index slipped 0.2%.
Oil Declines A Second Day On Europe Concern, Iran Talks: Oil fell a second day in
New York as rising bad loans in Spain fuelled speculation that Europe’s debt crisis
will spread and threaten global economic growth. Oil for July delivery, which
expires tomorrow, fell as much as 35 cents to USD82.92 a barrel in electronic
trading on the New York Mercantile Exchange at 1:20 p.m. Singapore time.