Colombo Bourse commenced the week on a positive note with both price indices edging up marginally. The Securities and Exchange Commission’s announcement regarding the relaxation of credit rules, spurred the market on Tuesday by leaps and bounds boosting the indices over 200 points. Supported by this ASPI once again able to surpass the 7000 points mark. However, volatility yet again overshadowed the bourse on Wednesday failing to keep the momentum and closed the market on negative grounds to wards the end week.
The Counters such as Colonial Motors, John Keells Holdings, Colombo Land & Development, Lanka Hospitals, PC House and HVA Foods were appetizers of investors during the week.
The benchmark ASPI gained 118.58 points (1.74%) WoW to close at 6951.64 points while the liquid MPI widened 147.70 points (2.39%) to close at 6334.41 points.
The cumulative turnover for the week was LKR 19.42bn with an average daily turnover of LKR 3.8bn, rise of 26% WoW. A total of 726mn shares were changed hands, by an increase of 30% WoW.
Foreign investors were on the selling side generating a net out flow of LKR 406.3mn.
We anticipate the market to improve in coming weeks given the relaxing of unfreeze credit rules which in turn reinforces the market activity. Therefore it is advisable to accumulate counters that are trading at a discount to the sector multiples coupled with growth and trading potentials.