CSE Diary for 10.08.2012
Bourse took a breather after continuous declines during the week. The benchmark index seesawed from positive to negative and finally managed to close flat with a marginal gain of 2 points. The MPI also closed in the green (up 16 points) while the S&P SL20 dipped marginally with 5 points down.
The turnover and activity was the worst during the week with a single crossing HNB providing some respectability to the turnover. The rising interest rates are likely to further hamper investor interest. We advise investors to re-adjust to a cautious note with increased exposure to high dividend yielding counters.
Hatton National Bank was the top performer supported by a single crossing in the counter of 210k shares dealt at LKR130. On board activities were insignificant as the counter closed at LKR132.0 for the day. More banking sector counters attracted investor interest led by Pan Asia Bank, Seylan Bank and Sampath Bank. Pan Asia Bank saw 773k shares changing hands with the counter closing flat for the day at LKR17.0. Seylan Bank recorded a couple of blocks of 98k and 34k on board at a similar price of LKR51.0 as the counter closed at the same price. Sampath Bank gained buying interest with strong results that the counter recorded. The counter finally closed at LKR161.0 with a gain of 0.6%.
Another banking sector counter Commercial Bank which has been in the favourite list of investors saw 89k shares trading for the day. The counter closed at LKR98.0.
European Stocks Drop As China Trade Miss Estimates: European stocks dropped, snapping a five-day rally, as worse-than-expected Chinese trade data added to evidence the global economy is slowing. U.S. index futures and Asian shares also declined. The Stoxx Europe 600 Index fell 0.4% to 269.33 at 8:05 am. in London.
Oil Pares Weekly Gain As China Exports Signal Slowdown: Oil fell the most in six days, paring its weekly gain as a collapse in China’s export growth added to signs the global economy is weakening. Oil for September delivery dropped as much as USD1.06, the most since Aug. 2, to USD92.30 a barrel in electronic trading on the New York Mercantile Exchange