Mar 07, 2013 (LBT) - The market continued to edge upwards, albeit modestly with the ASPI gaining 0.3% to close at 5680. Turnover jumped to LKR2.5 bn with trading in Asian Alliance Insurance and Cargills changing hands that accounted for 81% of the day’s total. Gainers outpaced losers with SMB Leasing(X), Nation Lanka Finance(W0021), Serendib Land and Office Equipment rising by 25.0%, 25.0% and 17.7% and offsetting declines in Ceylon Leather(W0013), Samson International and Tea Smallholder which lost 21.9%, 12.5% and 12.3% respectively. Meanwhile, Asian stock markets reversed their gains from the previous day despite the Dow hitting another record on Wall Street, but Tokyo's Nikkei was further supported by a weak
Construct a robust stock portfolio before stock mispricings are corrected. While the Sri Lankan bourse has been displaying only modest momentum over the last few days, medium to longer term equity investors in the market are likely to be rewarded notwithstanding intermittent bouts of volatility. Despite the discomfort of remaining invested during a sideways market, those with a healthy investment horizon are likely to generate healthy returns. Fundamental investors may benefit as equity correlations peter out to more respectable levels and valuation metrics display more dispersion to appropriately reflect varying corporate growth prospects allowing investors to select and build a robust portfolio of quality stocks before mispricings are corrected and valuations rerate to market multiples.