Tuesday, 21 May 2013

Quote for the day

"The wise investor can profit if he can think independently of the crowd and reach the rich answer when the majority of financial opinion is leaning the other way." -  Philip Fisher

LSL Market Review 21st May 2013

The indices closed in opposites today as most of the blue chips held ground amidst profit taking in several speculative and mid cap stocks. ASI snapped 04 day winning streak and closed 25.03 points (-0.4%) lower at 6,441.64. S&P SL 20 index closed at 3,660.94 with a gain of 11.59 points (0.3%).

Investor interest on premier blue chips such as Commercial Bank (Rs.125.00, +2.4%), John Keells Holdings (Rs.297.00,-0.0%) continued today as well and the stocks reached fresh 52 week highs. Commercial Bank has gained 7.5% during last five trading days while John Keells Holdings has gained 8.8% mainly on foreign buying. The total net foreign inflow to Commercial Bank and John Keells Holding during the five day period amounts to Rs.756mn and Rs.498mn respectively.

Foreigner investors were net buyers for the ninth consecutive day with net inflow Rs.1.1bn. Net inflows were reported in counters such as Commercial Bank (Rs.677mn), Distilleries (Rs.139mn) and John Keells Holdings (Rs.100mn).The total net foreign inflow for the year now amounts to Rs.12.0bn.

The daily turnover was Rs.2.2bn. 48% of the turnover came from off-the-floor deals in counter such as Commercial Bank (4.2mn shares at Rs.125.00), John Keells Holdings (0.9mn shares at c.Rs.298), Distilleries (0.6mn shares at Rs.190.00), Cargills (0.5mn shares at Rs.175.00), Sampath Bank (0.1mn shares at Rs.225.00) and Chevron (0.1mn shares at Rs.285.00).

Furthermore Overseas Realty (Rs.18.70,-1.1%), Nations Trust Bank (Rs.67.80,-0.3%), Distilleries (Rs.190.00,+0.3%), Chevron Lubricants (Rs.285.00,-0.4%) were among the 21 stocks that reached 52 week highs during the day.

On the other hand, drop in prices counters such as Retail favorite Environmental Resources (Rs.16.50,-6.3%), index heavy Nestle (Rs.2,010.00,-4.1%), Asian Hotels & Properties (Rs.71.10,-3.9%) and Sri Lanka Telecom (Rs.43.20,-2.5%) drove the ASI to the negative territory.

Retail activity was seen in counters such as Colombo Fort Land (Rs.39.30,+0.3%), Lanka Cement (Rs.10.20,+9.7%) and Odel (Rs.27.50,+1.9%).

Cash map for today was 45%.

Quote for the day

"Experienced traders control risk, inexperienced trader chase gains"-  Alan Farley

Asian Wealth Research Daily Market Review 20th May 2013

The All Share Price Index gained 86.0 points to close at 6,466.7 (1.3%) while the S&P SL20 Index rose 60.1 points to close at 3,649.4 (1.7%).

Total turnover for the day stood at LKR1,282.7 mn (USD10,160.0 k) vs. 12-months average daily turnover of LKR921.0 mn (USD7,294.7 k), whilst the volume traded for the day was 44,033 k against the 12-month average daily volume of 40,852 k.

Top contributory counters towards the turnover for the day were, Commercial Bank LKR244.6 mn (USD1,937.6 k, 2.4%), John Keells Holdings LKR159.1 mn (USD1,260.2 k, 4.6%), Royal Ceramics Lanka LKR139.0 mn (USD1,101.2 k, -0.8%), Overseas Realty LKR37.8 mn (USD299.6 k, 5.0%) and Sampath Bank LKR28.6 mn (USD226.5 k, -0.9%).

The CSE continued its upward trend unabated with both the ASI and the S&PSL20 index closing up in the green. Commercial Bank was the top contributor towards the day’s turnover on the back of number of large transactions which took place on the counter. 

A total of 4 crossings amounting to approx. 1.3 mn shares of Commercial Bank changed hands at a price of LKR122. In addition, two crossings were witnessed in Royal Ceramics Lanka, where 500 k shares changed hands at a price at LKR109. 

John Keells Holdings continued to witness strong institutional and retail interest and benefitted from a price appreciation of 4.6% by the end of the day’s trading. The counter also reached an all time high of LKR298.50 over the course of the day. 

Further, Overseas Realty, and Sampath Bank were amongst the top turnover contributing counters for the day, with Overseas Realty benefitting from a price appreciation of 5% to end the day at LKR18.80. 

With respect to retail interest for the day, activity was witnessed in counters such as Overseas Realty, Seylan Developments and Colombo Fort Land & Building.

Foreign purchases amounted to LKR350.9 mn (USD2,779.4 k), whilst foreign sales amounted to LKR62.5 mn (USD495.3 k). This resulted in a net foreign inflow of LKR 288.4 mn being recorded at the end of the day’s trading.

Market capitalization stood at LKR 2,483.2 bn. YTD performance is 14.6%.