Nov 09, 2012 (LBT) - The Colombo bourse remained on a positive trajectory throughout the week to close in green, edging up marginally. The All Share Index gained 57.1 points WoW to close at 5,589.43 points (1.0%), whilst the Milanka Price Index gained 81.6 points WoW to close at 5,152.98 points (1.6%). Indices benefited mainly on the back of the price gains in George Steuart Finance (22.5% WoW), John Keells Holdings (1.4% WoW), Asian Hotels & Properties (5.0% WoW), Cargills Ceylon (5.1% WoW) and Dialog Axiata (2.4% WoW).
The bourse started the week with expectations accumulating on budget 2013 along with the quarterly corporate earnings. Hence, the market observed positive sentiments spreading across the board, pushing up the indices which is relatively commendable compared to the performance of the past couple of weeks. The market reacted positively to the budget, which has given several concessions to the capital market in line with the objective of ‘the capital market development master plan’. The proposed concessions such as 50% tax exemption for three years on newly listedcompanies with a free float of 20%, exemption of withholding tax on interest income of corporate bonds and debentures listed in the CSE, corporate tax on unit trust management services reduced from 28% to 10% and exemption on stamp duty on the transfer of stocks by any persons to a margin trading account and vice versa, are an attempt to increase the investors participation in the capital market.
Further, corporate earnings released so far have portrayed a commendable performance for this quarter amidst the undesirable movements of macroeconomic factors. However, the export oriented companies are likely to face a slowdown in growth due to the crisis in West and particularly the apparel sector export revenue is expected to come down by 8-10% by end of 2012.
During the week, institutional and foreign interest was centred primarily on John Keells Holdings, Environmental Resources Investments and Chevron Lubricants. As a result, John Keells Holdings topped the turnover list witnessing two crossings totalling 426,492 shares at LKR 215.0. Environmental Resources Investments shares saw a crossing of 23,152,671 shares changing hands at LKR 16.40, whilst Warrants 006 and Warrants 003 too witnessed a crossing of 23,152,671 each, changing hands at LKR 5.20 and LKR 4.90 respectively. Subsequent to crossings,Environmental Resources Investments shares, Warrants 006 and Warrants 003 have secured places in the top turnover contributor list. Chevron Lubricants saw over 1.3 mn shares changing hands at an average price of LKR 203.41, emerging to be amongst the top contributors. In addition, DFCC Bank, Asiri Hospital Holdings, Hatton National Bank (Non-Voting), and Commercial Bank (Non- Voting) witnessed crossing during the course of the week. Moreover, main sector indices such as Banking Finance & Insurance gained 1.4%, Beverage Food & Tobacco gained 0.7%, whilst Diversified sector gained 1.4% for the week.
Furthermore, Environmental Resources Investments share, Environmental Resources Investments Warrants 003, Environmental Resources Investments Warrants 006, Asiri Hospital Holdings and Panasian Power topped the list in terms of volume traded during the week. The average daily turnover for the week was LKR 433.6mn whilst the average daily volume was 25.9mn shares.
The week saw foreign purchases amounting to LKR 1,294.9mn whilst foreign sales amounted to LKR 779.7mn. Market capitalisation stood at LKR 2,141.21bn, and the YTD performance is -8%.Sri Lanka Focus 09th November 2012.