Friday 5 April 2013

LSL Weekly Market Review W/E 05th Apr 2013

Indices dropped led by retail heavy counters on Monday. A sense of profit taking and cautious investing by retailers determined day’s sentiment. With this slight downturn we should expect plenty of bargains ahead. Nestle gathered steam with investors expecting a final dividend. National Development Bank continued to gain ground with the XD arriving shortly. ASI dipped 30.48 points (0.53%) to close at 5,705.20 and the S&P SL20 index lost 11.94 points (0.36%) to close at 3,281.63. Turnover was Rs. 403.2Mn.

A late surge on Tuesday in hand few of blue-chips failed to nullify the earlier losses completely on the broader index. Nestle, SLT and Sampath Bank saw their share prices trade higher. Meanwhile National Development Bank closed higher after an early drop. Banking counters and John Keells Holdings attracted the most attention of day’s interest. Retail counters seem to retreating ahead of the Sinhala & Tamil New Year as some retail investors liquidate their investments to meet their festive needs.

ASI dipped 0.58 points (0.01%) to close at 5,704.      62 and the S&P SL20 index gained 7.74 points (0.24%) to close at 3,289.37. Turnover was Rs. 1,010.9Mn.
Banks were the star performers on Wednesday with National Development Bank, DFCC Bank and Union Bank reaching their 52-week highs. National Development Bank, which declared LKR 10.00 dividend last week, closed at LKR 171.00 (+1.6%) with only one day remaining before the XD. DFCC Bank closed at LKR 137.10 (+3.8%) while speculation drove Union Bank share to LKR 19.30 (+12.2%) during day’s trading session. ASI advanced by 23.85 points (+0.42%) to close at 5,728.47 and the S&P SL20 index gained 15.90 points (+0.48%) to close at 3,305.27. Turnover was Rs.931.2Mn.

On Thursday, market gained further ground on banking and financials mainly from smaller-capped counters. National Development Bank, Union Bank and DFCC rose further to improve their 52-week high prices. It was encouraging to see plenty of retail activity on smaller capped banking counters. Approximately 19 million shares of Nations Trust Bank amounting around 8.2% of the issued share capital of the company changed hands among the foreign investors.  ASI gained 25.09 points (0.44%) to close at 5,753.56 and the S&P SL20 index gained 13.74 points (0.42%) to close at 3,319.01. Turnover was Rs. 1,648.5Mn.

Retail activity improved further on Friday with smaller to mid capped counters gaining investor interest. Conversely, blue-chips lost ground as few banking counters dropped with their XD dates falling today. Union Bank rallied with healthy retail participation. ASI gained 12.38 points (0.22%) to close at 5,765.94 and the S&P SL20 index lost 6.48 points (0.20%) to close at 3,312.53. Turnover was Rs. 634.2Mn.
Top contributors to turnover were Union Bank with Rs. 173.0Mn, Nations Trust Bank with Rs. 90.3Mn and Sampath Bank with Rs. 55.4Mn. Most active counters for the day were Union Bank, Merchant Bank of Sri Lanka and Sampath Bank.

Notable gainers for the day were Convenience Foods up by 23.9% to close at Rs. 190.00, Multi Finance up by 17.1% to close at Rs. 26.00 and Citrus Waskaduwa up by 11.8% to close at Rs. 5.70. Notable losers for the day were National Development Bank down by 6.4% to close at Rs. 161.00, Asiri Central down by 5.5% to close at Rs. 250.50 and Panasian Power down by 3.7% to close at Rs. 2.60.

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