Monday, 21 January 2013

LSL Market Review 21st Jan 2013

Profit taking on blue-chips drove the indices lower amidst heavy retail activity on LOLC. A parcel of  Environment Resource Investments changed hands yet again today. People's  Leasing & Finance also saw renewed  retail activity with the merger with its subsidiary company around the corner.

ASI lost 13.75 points (0.23%) to close at 5,862.02 and the S & P SL20 index lost 0.25 points (0.01%) to close at 3,174.12. The turnover was Rs. 899.9Mn.

Top contributors to turnover were Environment Resource Investments with Rs. 447.3Mn, Commercial Bank with  Rs. 77.9Mn and Sampath Bank with Rs. 73.9Mn. Most active counters for the day were Environment Resource Investments, LOLC and People's  Leasing & Finance.

Notable gainers for the day were People's  Leasing & Finance up by 8.0% to close at Rs. 16.20 Stafford Hotels up by 7.4% to close at Rs. 39.00 and Environment Resource Investments up by 5.6% to close at Rs. 17.00.

Cash Map for today was 54.24% helped by bullish activity on LOLC.  Foreign participation was 37.9% of the market turnover whilst net foreign selling was Rs. 371.0Mn.

Quote for the day

"As long as you enjoy investing, you'll be willing to do the homework and stay in the game. That's why I try to make the show so entertaining, because if you aren't interested, you'll either miss the opportunity to make money in the market or not pay enough attention and end up losing your shirt." - Jim Cramer  

LSL Weekly Report -18th Jan 2013

The broader index managed to close in positive ground on Tuesday helped by gains on Ceylon Tobacco Company and John Keells Holdings. Turnover was dominated by premier blue-chip John Keells Holdings and a handful of leading banking & financial sector counters. ASI gained 3.75 points (0.07%) to close at 5,750.24 and the S&P SL20 index lost 0.97 points (0.03%) to close at 3,132.90. Turnover was Rs. 727.7Mn.

Stocks rallied on Wednesday ahead of a meeting by the members of the Monetary Board to decide on the direction of the policy rates. Investors made early celebrations as yields on the treasury bills fell in today’s auction. Foreign investor favorites Chevron Lubricants, Ceylon Tobacco Company and John Keells gained good ground to help the indices close at its highest point so far this year. The resurgence of retail investors was also welcomed as many mid-capped counters gained notably.

ASI gained 62.23 points (1.08%) to close at 5,812.47 and the S&P SL20 index gained 28.86 points (0.92%) to close at 3,163.18. Turnover was Rs. 636.2Mn.
Blue chips led by Distilleries and Sri Lanka Telecom managed to make merry at the CSE on Thursday’s trading. Retailers continued to actively participate helped by a new wave of cash inflows into the stock market. However, blue chips continued to dominate in terms of turnover.ASI jumped 62.81 points (1.08%) to close at 5,875.28 and the S&P SL20 index gained 21.43 points (0.68%) to close at 3,184.61. Turnover was Rs. 2,049.4Mn.

On Friday, profit taking on Distilleries and few banking counters whilst at the same time retail interest on mid-capped counters outweighed each other as the broader market index managed scrape onto positive ground. Commercial Bank and Distilleries continued to witness institutional interest whilst a negotiated block trade took place on Hayleys. LOLC saw its shares actively and eagerly traded by the retail segment of investors. We witnessed the market losing steam towards the end of trading whilst trading began on a relatively slow note. ASI gained 0.49 points (0.01%) to close at 5,875.77 and the S&P SL20 index lost 10.25 points (0.32%) to close at 3,174.36. Turnover for today was Rs. 789.7Mn.

Top contributors to turnover were Commercial Bank with Rs. 273.3mn, Hayleys with Rs. 72.6Mn and Distilleries with Rs. 65.1mn. Most active counters for the day were LOLC, Lanka Orix Finance and Browns Beach Hotel.Notable gainers for the day were Parquet Ceylon up by 8.9% to close at Rs. 14.70, LOLC up by 8.2% to close at Rs. 66.00 and Browns Beach Hotel up by 7.4% to close at Rs. 20.40.  Notable loser for the day were Amana Takaful down by 5.9% to close at Rs. 1.60, Mullers & Phipps down by 5.6% to close at Rs. 1.70 and Kotagala Plantations down by 4.7% to close at Rs. 75.00.Cash map for today was 37.55% which is marked drop in buying momentum. Foreign participation for today was 25.6% of total market turnover whilst net foreign buying was Rs. 154mn.
Analyst’s note
The market showed signs of a bullish trend throughout the week. Market activity was well supported active foreign buying and local institutional activity. However, investors should be wary to get caught to the herd effect and emphasize on buying shares with relative value.