ASPI clears 7,000-point barrier after three weeks
April 18, 2015, 5:41 pm
Active local retail participation dominated markets this week, pushing the benchmark ASPI back to 7000-point levels for the first time in three weeks, Acuity Stockbrokers said in a market report yesterday.
"Despite the shortened trading week, overall market activity improved significantly W-o-W amid the Central Bank’s surprise decision to cut policy rates by 50bps. Volumes – supported by retail, high net worth and institutional buying – reflected similar positivism with average daily turnover value rising 93.29% W-o-W." the report said.
"While retailers generated much of the week’s activity (Sierra, Glass, Vidulanka and Valibel Power in particular), high net worth and institutional participation increased notably relative to the last two weeks with crossings accounting for 33.4% of total turnover (against 22.2% last week and 14.5% the previous week). "Foreigners however, reverted to a net selling position following three consecutive weeks of net inflows as counters such as DIST, HNB and SEYB recorded relatively large outflows over the week."
The report said that current market momentum is likely to be sustained in the week ahead, but investors are likely to adopt a watchful approach ahead of the presenting of the 19th Amendment in Parliament next week.