“Crossings continue to fuel the upside despite sluggish momentum…”
Posted on the August 8th, 2012 under Market Reports by Softlogic Equity Research 
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CSE Diary for 07.08.2012
Bourse extended its bearish momentum despite the release of the monetary policy review indicating that the current policy stance is appropriate in order to reach the growth estimates. The benchmark index took a volatile path as it merely gained 0.08% at its intraday high of 4932.24 points yet lost ground to close with a dip of 30 points. Similarly the MPI took a sluggish trend losing 15 points as 11 out of 25 counters recorded dips.
Diversified conglomerate John Keells Holdings, with its contributions to yesterday’s net foreign inflow secured its momentum spearheading the day’s turnover backed by a boost following a large off-market transaction of c.251k at LKR185.00. Tokyo Cement which was seen reaching a 52 week low of LKR27.40 recently, crept up the turnover renewing its 52 week low at LKR26.90. Backed by recent foreign accumulation, both its Voting and Non-Voting shares gained interest. The former witnessed 2 on-board blocks amounting to c.950k shares being transacted at LKR27.00 while the latter saw a block of 300k shares being picked on board at LKR19.80. Both the counters closed flat at LKR27.00 and LKR19.80 respectively.
High market caliber counter Ceylon Tobacco followed breathing in LKR28mn via an off-board transaction where 700k shares were dealt at the 52 week high block trade price of LKR700. The counter closed flat at LKR700.10 after reaching an intra-day high of LKR720.00 (+2.9%) Banking sector players Sampath Bank and Hatton National Bank were seen among the top slots of the turnover list. The latter gained investor interest with its earnings growth (+32% YoY, +11% QoQ) as it saw an intra-day high at LKR134.00 (+1.7%) whilst the former witnessed active participation closing with an appreciation of 0.6% for the day at LKR156.00. Both counters impacted the S&P SL20 index’s slide to the green during trading hours with their respective weightages being 7.27% and 5.63% before the index closed with a marginal dip.
Renewed participation was seen in Colombo Dockyard with majority of its volumes traded at a stagnant price of LKR190.00. An on-board transaction of 25k shares at LKR190.00. Dialog Axiata regained interest during the final trading hour registering 2 blocks of c.1.2 mn shares in total at LKR6.00 pushing up the turnover beyond the LKR200 mn mark.
Liquid counter Piramal Glass which witnessed some foreign selling yesterday saw 3 blocks amounting to 175k shares across the board being dealt at LKR6.00 before closing flat at LKR5.30. Further Power and Energy sector penny stock Panasian Power recorded several sizeable blocks across the board.
Oil Trades Near Two-Week High on Forecasts US. Supplies Dropped: Oil traded near its highest in two weeks in New York on forecasts that crude inventories declined in the US.., the world’s largest consumer of the commodity. Crude for September delivery was at USD92.45 a barrel in electronic trading on the New York Mercantile Exchange at 8:57 am. London time.
Asian Stocks Gain on Europe Central Bank Bond-Buying Plan: Asian stocks rose, with the regional benchmark index headed for its highest close in three months, after Germany backed the European Central Bank’s bond-buying plan, boosting the outlook for exporters. The MSCI Asia Pacific Index rose 0.6% to 119.83 as of 5:17 pm. in Tokyo. The Stoxx Europe 600 Index climbed 0.1% to 267.11 at 10:15 am. in London.
