LSL - Market Review - 28th Dec 2012

John Keells Holdings dominated proceedings at the CSE today (Friday) whilst gains on Ceylon Tobacco Company, Hatton National Bank and National Development bank helped to bolster the indices.  Institutional and high net-worth activity was seen on counters such as Browns Investments and Sampath Bank. Today saw one of the least amounts of losers for this calendar year indicating high spirits in the market.

ASI gained 36.22 points (0.65%) to close at 5,607.13, MPI gained 59.34 points (1.17%) to close at 5,120.17 and the S&P SL20 index gained 8.62 points (0.28%) to close at 3,068.99. Turnover was Rs. 930.6Mn.

Top contributors to turnover were John Keells Holdings with Rs. 527.3Mn, Browns Investments with Rs. 107.4Mn and Sampath Bank with Rs. 91.6Mn. Most active counters were Nation Lanka Finance, HVA Foods and Citrus Leisure warrants 19.

Notable gainers for the day were Mullers up by 12.5% to close at Rs. 1.80, Citrus Leisure up by 12.2% to close at Rs. 27.70 and Tess Agro up by 8.7% to close at Rs. 2.50. Notable losers for the day were Sierra Cables down by 4.0% to close at Rs. 2.40, Asiya Siyaka Commodities down by 2.0% to close at Rs. 5.00 and Commercial Credit down  by 1.8% to close at Rs. 16.00.

Cash map for today (excl crossings) was 51.85%. Foreign participation was 35% of total market turnover whilst net foreign inflow was Rs. 620Mn.

Quote for the day

"Whenever we get a period of poor performance, most investors conclude something must be fixed. They ask if the markets have changed. But trend following presupposes change." - John W. Henry

LSL - Market Review 26th Dec 2012

Colombo shares extended their gains into Wednesday with most of the blue-chips ending higher. Out of 16 stocks traded in S&P LK20 index, 13 closed with gains.

ASI advanced by 46.02points (+0.8%) to 5,570.91. MPI ended with a 0.4% gain (+21.01 points) at 5,060.83 while S&P LK20 index finished 0.7% higher (+21.59 points) at 3,060.37.The gains in the indices were supported by the price increase in blue-chips such as in Ceylon Tobacco (LKR 800,+2.9%), Dialog (LKR 8.40,+3.7%) and Aitken Spence (LKR 119.90,+2%).

The market turnover improved from last Monday to LKR 242mn despite the holiday-thinned trading. Only 8.2mn shares changed hands today clearly indicating the low activity levels.

The highest contribution for the turnover came from John Keells Holdings (LKR 151mn), Commercial Bank (LKR 27mn) and Bukit Darah (LKR 10mn). Free Lanka Holdings, Nation Lanka Finance and Central Investment and Finance were among the actively traded stocks.

The cash map (exl crossings) advanced to 78% indicating some buying pressure but on low activity.

Foreign participation accounted for 45% of the total turnover and foreigners were net buyers for the eighth consecutive day with a net inflow amounting to LKR 119mn.

Quote for the day

“Deciding when to cut your losses is one of the toughest decisions for anyone to make, but traders at the top of their game know that they always have to make the decisions they need to make, which may or may not be the ones they want to make” - Doug Hirschhorn

Quote for the day

“First if all, never play macho man in the market. Second, never overtrade. My major problem was not the number of points I lost on the trade, but that I was trading far too many contracts relative to the equity in the accounts that I handled.” - Paul Tudor Jones

LSL - Market Review - 24th Dec 2012

Market review – 24th December 2012

Activity at the CSE was quite dull throughout the day as investors as well as professionals seem to have been caught up in the festivities. Today’s turnover was the lowest in more than five months and the second lowest for the calendar year so far. Bukit Darah continued trade well at Rs. 690 levels which was Rs. 20 above its previous closing price. We can expect this whole week to be one with very low activity.

ASI gained 8.40 points (0.15%) to close at 5,524.89, MPI lost 4.76 points (0.09%) to close at 5,039.82 and the S&P SL20 index gained 4.54 points (0.15%) to close at 3,038.78. Turnover was Rs. 101.3Mn.

Top contributors to turnover were Haycarb with Rs. 17.5, Bukit Darah with Rs. 13.8 and PC House with Rs. 12.2Mn. Most active counters for the day were Madulsima, Softlogic Holdings and Environmental Resource Holdings.

Notable gainers for the day were Tea Small Holders up by 12.9% to close at Rs. 48.00, Free Lanka Capital Holdings up by 4.4% to close at Rs. 2.40 and PC House up by 3.9% to close at Rs. 5.40. Notable losers for the day were Madulsima Plantations down by 6.1% to close at Rs. 15.50, Lanka Orix Finance down by 2.6% to close at Rs. 3.70 and Access Engineering down by 1.7% to close at Rs. 17.70.

Cash map for today was 49.23%. Foreign participation was 10% of total market turnover whilst net foreign inflow was Rs. 4.0Mn.

Quote for the day

”It’s very difficult to be different from the rest of the crowd the majority of the time, which by definition is what you’re doing if you’re a successful trader.” - Bill Lipschutz

Quote for the day

“Trading Stocks is simple mathematics 2+2= 4 but our greed makes it 5 and our panic makes it 3.” - Feroz Ahmed Khan

LSL - Market Review – 20th Dec 2012

Market seems to be building some momentum as foreign and local institutions were seen collecting parcels and retail quantities at these low levels of several blue-chips. Blue-chips received the lion’s share of the activity as retail participation remains on the sidelines. Plantation companies attracted renewed investor interest as tea prices fetched record prices in the most recent auction. To further compliment the pick-up in sentiment, todays’ cash map was a resounding 70.5% excluding crossings.

Distilleries Company has received an “AAA rating” by Fitch ratings which might indicate that a corporate debt instrument maybe in the offing in the future.

ASI gained 14.70 points (0.27%) to close at 5,527.36, MPI gained 9.76 points (0.19%) to close at 5,030.62 and the S&P SL20 index gained 12.87 points (0.43%) to close at 3,030.86. Turnover was Rs. 811.9Mn.

Top contributors to turnover were John Keells Holdings with Rs. 572.2Mn, Aitken Spence with Rs. 67.2Mn and Commercial Bank with Rs. 49.0Mn. Most active counters for the day were Nation Lanka Finance, Madulsima Plantations and Central Finance & Investments.

Notable gainers for the day were Capital Alliance Finance up by 19.9% to close at Rs. 24.10, Madulsima Plantations up by 10.0% to close at Rs. 16.50 and United Motors up by 5.6% to close at Rs. 95.00. Notable losers for the day were Expo Lanka down by 2.9% to close at Rs. 6.80, Regnis down by 2.4% to close at Rs. 58.00

Foreign participation was 53% of total market turnover whilst net foreign buying was Rs. 533Mn.

Quote for the day

"Investing in stocks is an art, not a science, and people who’ve been trained to rigidly quantify everything have a big disadvantage." - Peter Lynch

LSL - Market Review – 19th Dec 2012

Market traded with mixed sentiments throughout the day although few blue-chips lost ground. Commercial Bank continued to provide activity in the market whilst turnover was dominated by blue-chips. Gains on Bukit Darah helped to prop up the indices as a private deal took place above the market price. Yields on treasury bills dropped across all maturities in today’s auction helping revive the equity market.

ASI gained 4.87 points (+0.09%) to close at 5,512.66, MPI lost 18.44 points (-0.37%) to close at 5,020.86 and the S&P SL20 Index lost 1.63 points (-0.05%) to close at 3,017.99. Turnover was Rs. 464mn.

Top contributors to turnover were Commercial Bank with Rs. 194.1mn, Gargills Ceylon with Rs.56.2mn and Bukit Dharah with Rs.52.5mn. Most active counters for the day were Lanka Milk Foods, Sampath Bank and Vallibel One.

Notable gainers for the day were Talawakele Plantations, up by 10% to close at Rs. 24.90, Huejay International, up by 9% to close at Rs. 79.80 and Ceylon Insurance, up by 8% to close at Rs.79.00. Notable losers for the day were Ceylon Leather Products – warrant (0013), down by 15% to close at Rs.5.10, Tea Smallholder Factories down by 14% to close at Rs. 42.30 and Hapugastenna Plantations down by 10% to close at Rs.38.60.

Cash map for today was 65.4% (excluding the crossings). Foreign participation was 51% of the total market turnover whilst net foreign buying was Rs. 105.2mn.

LSL - Market Review – 18th Dec 2012

A major deal on Asiri Central and few blue-chips helped to bolster activity after a relatively slow start. Indices managed to close in positive ground helped by gains on blue-chips such as Commercial Bank. It is worthwhile noting that John Keells Holdings is trading approximately at around the same price levels as it did during the peak of the All Share Price Index in February 2011. Conversely, the ASI has lost approximately 2,300 points to date since the peak.

ASI gained 4.28 points (0.08%) to close at 5,507.79, MPI gained 27.40 points (0.55%) to close at 5,039.62 and the S&P SL20 index gained 10.18 points (0.34%) to close at 3,019.62.Turnover was Rs. 2,587.6Mn.

Top contributors to turnover were Asiri Central with Rs. 1,825.8Mn, Commercial Bank with Rs. 186.9Mn and John Keells Holdings with Rs. 155.3Mn. Most active counters for the day were Access Engineering, Sampath Bank and HVA Foods.

Notable gainers for the day were Access Engineering up by 8.2% to close at Rs. 18.40, Hydro Power Free Lanka up by 2.9% to close at Rs. 7.00 and Pan Asia Bank up by 2.7% to close at Rs. 19.00. Notable losers for the day were Hemas Power down by 4.8% to close at Rs. 20.00, Asian Hotels & Properties down by 3.5% to close at Rs. 75.00 and Lanka IOC down by 3.4% to close at Rs. 20.00.

Cash map for today was 90.24%but stood at 50.64% excluding the crossings. Foreign participation was 15.7% of total market turnover whilst net foreign buying was Rs. 140Mn.

Quote for the day

“The market does not beat them.  They beat themselves, because though they have brains they cannot sit tight.”  - Jesse Livermore

LSL - Market Review – 17th Dec 2012

Market opened on a positive today on very low activity. Today’s turnover was dominated by private deals which contributed almost 62%. Indices closed in negative territory as losses on many blue-chips didn’t help the cause. Retail participation was subdued ahead of the seasonal spending period.

ASI dropped 19.21 points (0.35%) to close at 5,503.51, MPI lost 33.30 points (0.66%) to close at 5,011.90 and the S&P SL20 index declined 13.35 points (0.44%) to close at 3,009.44. Turnover for today was Rs. 532.9Mn.

Top contributors to turnover were Environmental Resource Investments with Rs. 203.1Mn, Chevron Lubricants with Rs. 109.2Mn and Commercial Bank with Rs. 77.8Mn. Most active counters for the day were Free Lanka Capital Holdings, CIC Holdings and Chevron Lubricants.

Notable gainers for the day were Namunukula Plantations up by 12.2% to close at Rs. 79.80, Blue Diamonds non-voting up by 5.9% to close at Rs. 1.80 and Seylan Bank up by 2.5% to close at Rs. 57.00. Notable losers for the day were Softlogic Finance down by 6.6% to close at Rs. 24.00, Hemas Holdings down by 3.7% to close at Rs. 26.00 and E-Channeling down by 3.5% to close at Rs. 5.50.

Cash map for today (excl crossings) was 53%. Foreign participation was 65% of total market turnover whilst net foreign buying was Rs. 102Mn.

Quote for the day

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”- Paul Samuelson

Quote for the day

"When buying shares, ask yourself, would you buy the whole company?”- Rene Rivkin

LSL - Market Review – 13th Dec 2012

Positive momentum continued into today’s trading with most blue-chips gaining ground.  Retail participation gathered activity today on improved sentiment. Gains on Ceylon Tobacco Company helped to bolster the indices with relatively high activity seen on the normal board. Banking sector counters such as Sampath Bank, National Development Bank and Commercial Bank also gained ground. It should be noted that foreigners were net sellers on both yesterday and today.

ASI gained 30.72 points (0.56%) to close at 5,547.36, MPI gained 52.77 points (1.05%) to close at 5,063.96 and the S&P SL 20 index gained 29.74 points (0.99%) to close at 3,024.29. Turnover was Rs. 702.3Mn.

Top contributors to turnover were Ceylon Tobacco Company with Rs. 104.5Mn, Chevron Lubricants with Rs. 99.9Mn and National Development Bank with Rs. 54.1Mn. Most active counters for the day were HVA Foods, Central Investments & Finance and Blue Diamonds.

Notable gainers for the day were Sierra Cables up by 13.0% to close at Rs. 2.60, Tangerine up by 7.3% to close at Rs. 75.00 and The Finance non-voting up by 7.1% to close at Rs. 6.00. Notable losers for the day were PC House down by 5.6% to close at Rs. 5.10, Tess Agro down by 4.4% to close at Rs. 2.20 and asia Asset Finance down by 4.0% to close at Rs. 2.40.

Cash map for today was 63.22%. Foreign participation was 32% of total Market turnover whilst net foreign selling was Rs. 24Mn.

Quote for the day

"Successful investing is anticipating the anticipations of others."  - John Maynard Keynes 

LSL - Market Review – 12th Dec 2012

Colombo stocks rose today with the ASI heading for its highest close in three weeks, on monetary easing by the CBSL. Earlier today, CBSL reduced the policy rates by 25bps while removing the credit ceiling on the banks in the view of fuelling the economic growth in 2013. Taking the cue, the treasuries declined across all the maturities at today’s auction with 1-yr rate declining by 41bps to 12.45%.

ASI advanced by 98.86 points (+1.8%) to 5,516.64 recording the highest daily gain since September 14th while MPI and S&P LK20 index gained 97.77 points (+2.0%) and 31.34 points (+1.1%) to close at 5,011.19 and 2,994.55 respectively. The market turnover stood at LKR 480.0mn.

Retail investors showed interest across the board with 225 stocks posting gains out of the 238 traded.

The highest contribution for the turnover came from HNB (LKR 88.1mn), Nestle (LKR 49.6mn) and John Keells Holdings (LKR 44.6mn). The three crossings reported in HNB and Nestle accounted for only 18% of the total turnover. The cash map (exl crossings) advanced to 58% reflecting the upbeat momentum of the local investors.

Central Investments and Finance Co (+16%), Stafford Hotels (+13.5%), HVA foods (+10%) and Laugfs Gas-non-voting (+8%) were among the top performers while heavy interest was seen in Peoples Leasing, Nation Lanka Finance and SMB Leasing-non-voting.

Interestingly foreigners were net sellers today, ending two consecutive days of net buying. Foreign participation accounted for 28% of the total turnover with a net outflow amounting to LKR 31mn.

Colombo bourse trades at a price earnings ratio (PER) of 11.9x, below the MSCI emerging markets PER of 12.6x and MSCI frontier emerging market PER of 13.4x, suggesting more room for price increase. The market RSI has increased to 56, still below the overbought level of 70. The technical indicators point towards the possibility of sustaining the positive momentum seen in the last few days.

Quote for the day

”It’s very difficult to be different from the rest of the crowd the majority of the time, which by definition is what you’re doing if you’re a successful trader." - Bill Lipschutz

LSL - Market Review – 11th Dec 2012

Indices managed to close higher, helped by gains made on Nestle and Ceylon Tobacco Company. Few private deals were seen on Nestle, Hatton National Bank and National Development Bank which dominated today’s turnover. Retail participation remained on the sidelines as most of the highest contributors to turnover were comprised of blue-chips.

ASI gained 12.92 points (0.24%) to close at 5,417.78, MPI gained 7.28 points (0.15%) to close at 4,913.42 and the S&P SL20 index gained 5.10 points (0.17%) to close at 2,963.21. Turnover was Rs. 488.9Mn.

Top contributors to turnover were Hatton National Bank with Rs. 169.2Mn, Nestle with Rs. 72.8Mn and National Development Bank with Rs. 68.1Mn. Most active counters for the day were People’s leasing & Finance, Ceylon Hotels Corporation and Nestle.

Notable gainers for the day were Free Lanka Capital Holdings up by 9.1% to close at Rs. 2.40, Malwatte Plantations up by 4.4% to close at Rs. 4.70 and Nestle up by 3.9% to close at Rs. 1,510.00. Notable losers for the day were Kelani Valley Plantations down by 9.1% to close at Rs. 78.20, Capital Alliance Finance down by 7.4% to close at Rs. 17.60 and Three Acre Farms down by 4.8% to close at Rs. 45.60.

Cash map for today was 76.17%. Foreign participation was 54% of total market turnover whilst net foreign buying stood at Rs. 36Mn.

Quote for the day

“In trading you have to be defensive and aggressive at the same time.  If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money.” - Ray Dalio

Quote for the day

"Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett

LSL - Market Review- 10th Dec 2012

Colombo shares rose on Monday amid improved interest on blue-chip counters.

Announcement made by Dialog Axiata about the acquisition of 26% stake in Digital Commerce, which owns Anything.lk e-commerce site, drove the activities levels of the counter and DIAL closed at LKR 8.10 after hitting an intra-day high of LKR 8.20. DIAL became the highest contributor (LKR 192.1mn) to the market turnover supported by the four crossing totaling to 19.4mn shares. John Keells Holdings (LKR 91.2mn) and Nestle Lanka (LKR 86.4mn) were the other notable contributors to the turnover.

Dividend-paying stocks were in the spotlight today with Nestle Lanka (LKR 1,454.0,+6.1%) and Ceylon Tobacco (LKR 750.0,+5.5%) reaching the 52 week highs.

The ASI advanced 14.46 points (+0.3%) to 5,404.86 while MPI increased by 12.52 points (+0.3%) to 4,906.14. The S&P LK 20 index added 5.49 points (+0.2%) to trade at 2,958.11. 

The turnover was LKR 560.5mn. Only three sectors in the index gained today namely beverage, food and tobacco sector, manufacturing sector and the financial service sector.

Among the top performers were NDB Capital Holdings with a gain of 11.6%, Ceylinco Insurance-non voting with a gain of 9.0% and Lanka Milk Foods with an increase of 7.1%.

Foreigners dominated the market activity, accounting for 67% of the market turnover and were net buyers of LKR 174mn worth of shares. Despite high foreign and institutional participation, cash map (excl crossings) improved to only 46% indicating wait and see approach adopted by individual/domestic investors.

With the improved activity levels in the last few days, the market RSI has now increased to 43. The ASI seems to be bouncing up from the 50% retracement level which, coupled with other technical indicators suggest a potential short term upward movement in ASI.

LSL - Weekly Market Review - W/E 7th Dec 2012

Improved investor sentiment on Colombo equities drove all the three market indices up during the week. ASI advanced by 36.15 points (+0.68%WoW) to close at 5,387.40 whereas MPI advanced by 24.79 points (+0.51%WoW) to close at 4,793.62. S&P SL 20 Index ended at 2,953.62, up 11.60 index points (+0.39%WoW). Average turnover improved marginally by 3.6%WoW to LKR 538.2mn and foreign participation for the week was 48.4% with a total net inflow of LKR 975.4mn, up 6.5% over the last week.

The Colombo stock exchange commenced operations for the week on Monday with broad market indices ending up on a negative note. Market turnover was LKR 173Mn. Benchmark All Shares Index (ASI) fell 13.54 points (-0.25%), sensitive Milanka Price Index (MPI) fell 27.74 index points (-0.57%) and S&P SL 20 Index declined by 10.62 points (-0.36%). Major contributor for the turnover was John Keells Holdings with LKR 24.7mn followed by Pan Asia Bank with LKR 20.8mn and DFCC Bank with LKR 12Mn. Foreign participation was 21% of the total turnover and foreign investors were net buyers with a net inflow of LKR 8mn.

Colombo shares closed proceedings on Tuesday on a flat note with mixed sentiments shown around in many counters. ASI dropped by 6.26 (0.12%) and the liquid MPI gained by 14.52 (0.30%) points. S&P SL20 Index gained by 0.77 (0.03%). Market turnover improved to LKR 505.5mn mainly due to the crossings on John Keells Holdings, Environmental Resources Warrants 0003 and 0006.John Keells Holdings (LKR 161.4mn), Environmental Resources Warrants 0003& 0006 (LKR 189.1mn) combined were the top contributors to the turnover followed by Chevron Lubricants (LKR 20.8mn) which continued to attract high investor interest, and Keells Hotels (LKR 11.1mn). Further Free Lanka Capital Holdings, Renuka Shaw Wallace Rights (voting), and Odel Rights were among the actively traded stocks during the day. Foreign participation was 58% and foreign investors were net buyers of LKR 156mn.

Bourse ended almost flat on Wednesday where benchmark indices closed in opposite direction. ASI dropped 8.24 points (-0.15%) and MPI gained marginally by 1.23 points (+0.03%) while S&P SL 20 Index dropped by 9.03 index points. Turnover level improved to LKR 871.0mn mainly due to the off-the-floor deals recorded by Aviva NDB Insurance, John Keells Holdings and Asiri Surgical Hospitals. John Keells Holdings topped the turnover list with LKR 61.7mn followed by National Development Bank (LKR 21.2mn) and Aitken Spence Hotel Holdings (LKR 14.8mn). Panasian Power, Renuka Shaw Wallace – Rights and Vallibel One were the heavily traded stocks during the day. Foreign participation accounted for 43% of the total turnover and foreign investors were net buyers with a net inflow of LKR 702mn.

Colombo stocks, coming off four consecutive trading sessions of losses, gained in value on Thursday. The benchmark ASI recovered 64.12 points (+1.20%), Sensitive MPI recovered 42.41 points (+0.87%) and S&P SL 20 Index gained 28.71 points (0.98%).  Market turnover reached LKR 877.1mn supported by institutional activities in Nestle, John Keells Holdings, Distilleries, NDB and Environmental Resources Investments (warrants). Top contributor to the turnover was Distilleries (LKR 182.1mn) followed by National Development Bank (LKR 128.5mn) and Environmental Resources Investments – warrant 0006 (LKR 103.2mn). Central Investment & Finance, Peoples Leasing & Finance, HVA Foods and Swarnamahal Financial Services were the mostly traded stocks for the day. Foreign participation was relatively higher and it accounted for 66% of the total turnover. Foreign investors ended as net buyers with a net inflow of LKR 120.2mn.

Market wrapped the weekly operations on Friday on opposites. Benchmark ASI closed almost flat (gained 0.07index points) while MPI lost 5.63 index points (-0.11%) and S&P SL 20 Index gained 1.77 points (+0.06%). Market turnover was LKR 264.0mn. Off-the-floor deals were recorded from Citrus Leisure and Seylan Bank (non-voting) where the two counters brought out the highest turnover levels of LKR 89.5mn and LKR 47.1mn respectively and they were among the mostly traded stocks. Heavy retail investor interest was seen on People’s Lasing & Finance (LKR 20.8mn) during the day and it was the 3rd largest contributor to the turnover. Further, Citrus Leisure –warrants, Commercial Bank non-voting and HVA Foods were traded heavily. Foreign investor participation was lower at 6.9% and recorded a net outflow of LKR 11.0mn.

Quote for the day

“Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible.” - Ed Seykota

LSL - Market review – 06th December 2012

Colombo Bourse, coming off four consecutive trading sessions of losses, gained in value on Thursday. The benchmark ASI recovered 64.12 points (+1.20%) to close at 5,387.33 while sensitive MPI recovered 42.41 points (+0.87%) to close at 4,899.25. S&P SL 20 Index gained 28.71 points (0.98%) to close at 2,951.85.

Daily market turnover reached LKR 877.1mn supported by institutional activities in Nestle, John Keells Holdings, Distilleries, NDB and Environmental Resources Investments (warrants). Accordingly almost 63% of the total turnover was from crossings. Top contributor to the turnover was Distilleries (LKR 182.1mn) followed by National Development Bank (LKR 128.5mn) and Environmental Resources Investments – warrant 0006 (LKR 103.2mn).

Stocks which played a major role in driving the index up include Nestle Lanka (up 8.1%, close at LKR 1,300.99), Sri Lanka Telecom (up 2.6%, close at 43.20), and Chevron Lubricants (up 2.6%, close at 190.00). Out of the 19 stocks traded in S&P SL Index, only one (Carsons Cumberbatch) recorded a drop in price.

Central Investment & Finance, Peoples Leasing & Finance, HVA Foods and Swarnamahal Financial Services were the heavily traded stocks for the day.

Foreign participation was relatively higher and it accounted for 66% of the total turnover. Foreign investors ended as net buyers with a net inflow of LKR 120.2mn.

In terms of technical indicators market RSI on All Share Index increase to 41 from the previous figure of 29. The 5day moving average line is just about to cross the 10day moving average from the bottom which can be considered as a short-term bullish crossover. And also cash map excluding crossings improved to 56% suggesting the return of bargain hunters to the stock market.

Quote for the day

“If you can’t take a small loss, sooner or later you will take the mother of all losses.”

 - Ed Seykota

2012 YTD Country Returns

Below we highlight the QTD and YTD stock market returns for 77 countries around the world.  Through today, the average country in the table was up 8.47% year to date.  With a YTD gain of 11.90%, the US is outperforming the average country by 353 basis points. 

The top performing country YTD is currently Turkey with a gain of 47.31%.  Pakistan ranks a close second with a gain of 46.73%, followed by the Philippines (30.52%), Thailand (29.72%) and Estonia (28.94%).  The worst performing country YTD is currently the Ukraine with a decline of 41.23%.  Bangladesh ranks second worst at -22.28%, followed by Sri Lanka (-12.23%) and Morocco (-12.08%).

Of the G7 countries, Germany is up by far the most with a YTD gain of 26.05%.  And don't look now, but France has overtaken the US in 2012 with a gain of 13.31%.  The US ranks third, followed by Japan, Italy, the UK.  Canada ranks last with a YTD gain of just 1.50%.

India is the only BRIC country performing particularly well in 2012 with a gain of 25.19%.  Russia and Brazil are both up less than 5%, while China is one of the few countries in the red at -10.20%.

Source: http://www.bespokeinvest.com/

LSL - Market review – 05th December 2012

 Colombo stocks ended almost flat today where benchmark indices closed in opposite direction.

All Share Index closed at 5,323.21, drop 8.24 points (-0.15%) and MPI gained marginally by 1.23 points (+0.03%) to close at 2,923.14. S&P SL 20 Index dropped by 9.03 index points and end at 2,923.14.

Turnover level improved to LKR 871.0mn mainly due to the off-the-floor deals recorded by Aviva NDB Insurance, John Keells Holdings and Asiri Surgical Hospitals. 1.5mn shares of Aviva NDB Insurance changed hands at LKR 349.00 per share. Most likely parties to the transaction are NDB Capital (CDIC) and AIA.

John Keells Holdings topped the turnover list with LKR 61.7mn followed by National Development Bank (LKR 21.2mn) and Aitken Spence Hotel Holdings (LKR 14.8mn).

Panasian Power, Renuka Shaw Wallace – Rights and Vallibel One were the heavily traded stocks during the day.

Foreign participation accounted for 43% of the total turnover and foreign investors were net buyers with a net inflow of LKR 702mn.

Quote for the day

“Don’t get in a shootout if you’ve left your guns at home. The markets are no place to be trying to impress people. The only way to impress anybody is to stay on your toes, be consistent, and trade within your means.” – Marty Schwartz

Quote for the day

"The majority of unskilled investors stubbornly hold onto their losses when the losses are small and reasonable. They could get out cheaply, but being emotionally involved and human, they keep waiting and hoping until their loss gets much bigger and costs them dearly.”
- By William O’Neil

Quote for the day

"If you want to know everything about the market, go to the beach. Push and pull your hands with the waves. Some are bigger waves, some are smaller. But if you try to push the wave out when it’s coming in, it’ll never happen. The market is always right." - Ed Seykota 

Quote for the day

“If you think you are beaten, you are;

If you think you dare not, you don't.
If you'd like to win, but think you can't
It's almost a cinch you won't.
If you think you'll lose, you've lost,
For out in the world we find
Success being with a fellow's will;
It's all in the state of mind.

If you think you're outclassed, you are:
You've got to think high to rise.
You've got to be sure of yourself before
You can ever win a prize.
Life's battles don't always go
To the stronger or faster man,
But soon or late the man who wins
Is the one who thinks he can.”

― Walter D. Wintle

* Companies in CSE Trading Less Than Rs.10.00 as of 30 Nov 2012

A 

AGST.N0000   5.70
ATL.N0000     1.60
AAF.N0000     2.30
ASIY.N0000    5.00
AMSL.N0000   8.80

B

BERU.N0000    2.20
BLUE.N0000    3.70
BLUE.X0000    1.60
BIL.N0000      3.60

C

CIFL.N0000    3.70
CFT.N0000     5.60
CLPL.W0013   5.60
CLPL.W0014   5.70
CTBL.N0000    5.90
REEF.W0019   3.60
CLC.N0000     3.30

D

DIAL .N0000    8.10

E

ECL.N0000      5.30
EMCR.N0000   9.40
GREG.W0003   3.70
GREG.W0006   4.10
EXPO.N0000    6.80

F

FLCH.N0000    2.20

H

MGT.N0000     9.30
HPFL.N0000     6.50

K

CITK.N0000    6.00
KHC.N0000     9.10

L

LOFC.N0000    3.40
LCEM.N0000    8.60
LDEV.N0000    6.50
LITE.N0000     6.90

M

MAL.X0000     4.30
MAL.N0000     4.50
MARA.N0000   6.90
MULL.N0000    1.60 

N

NIFL.N0000     6.30
CSF.W0021     1.80
CSF.N0000      8.60
NHL.N0000      3.00

P

PAP.N0000      2.40
PCH.N0000      5.20
PCP.N0000     10.00   
PCHH.N0000    7.30
GLAS.N0000    5.90

R

RWSL.N0000    2.40
RAL.N0000       4.50 
RICH.N0000     7.60

S

CSD.N0000      8.20
SIRA.N0000     2.30
SEMB.X0000    0.40
SEMB.N0000    0.30
SCAP.N0000    6.10
SFS.N0000      3.00

T

TAP.N0000     4.50
TESS.N0000   2.10
TJL.N0000      8.50
TFC.X0000     5.10
TWOD.N0000  8.90

W

CITW.N0000    5.60

V

VLL.N0000      3.60
VPEL.N0000    6.40

Quote for the day

"Most people think that they’re playing against the market, but the market doesn't care. You’re really playing against yourself". – Marty Schwartz.

LSL - Weekly Market Review - W/E 30th Nov 2012

Market opened for the week on Monday on a negative note. ASI slipped 22.22 points (0.4%) MPI lost 19.70 points (0.4%) and S&P SL20 index shed 7.30 points (0.25%).. Turnover was Rs 116.0mn. John Keells Holdings (Rs. 26.7mn), Peoples Finance (Rs. 6.0mn) and Colombo Dockyard (Rs. 5.6mn) emerged as the top contributors to the turnover while relatively high activity was seen in Peoples Finance, Blue Diamond-non voting and Central Investments and Finance counters. Foreign participation was 15% of total market turnover whilst net foreign buying was Rs. 39Mn.

Stocks slumped on Colombo Bourse on Wednesday, again on low volumes with only 16mn shares traded. Market turnover picked up to LKR 739.5mn from last Monday mainly due to the crossings recorded in index heavy John Keells Holdings and Aitken Spence Holdings which accounted for 73% of the market turnover. Benchmark All Shares Index slipped by 50.21 points (-0.93%) while sensitive MPI lost 77.36 index points (-1.57%) and S&P SL 20 Index lost 25.24 points (-0.85%).  John Keells Holdings (Rs. 393.3mn) and Aitken Spence Holdings (Rs. 157.4mn) were the top contributors to the turnover followed by Peoples Finance (Rs. 23.9mn), which continued to attract high investor interest. Further, Commercial Bank, Swarnamahal Financial Services and Browns Investments were among the actively traded stocks. Foreign participation was 51% and foreign investors were net buyers with a net inflow of Rs. 395.6mn.

Colombo Stocks recovered on Thursday after two consecutive days of losses as all the market indices closed with positive returns. Retail investor participation also improved compared to the previous day. Off-the-floor deals from John Keells Holdings and Cargills Ceylon accounted for 38% of the market turnover. All Shares Index advanced by 28.92 points (+0.54%) while MPI gained 32.39 index points (+0.67%) and S&P SL 20 Index advanced by 17.39 points (+0.59%). Market turnover improved to Rs.877.5mn. Foreign participation was 32% of the total turnover and foreign investors were net buyers with a net inflow of Rs. 462mn.

On Friday market closed with negative performance. ASI lost 12.35 points (-0.23%), MPI lost 21.71 points (-0.44%) and S&P SL20 index lost 10.14 points (-0.34%). Turnover was Rs. 344.8mn. Top contributors to the turnover were John Keells Holdings (Rs.51.9mn), Nestle Lanka (Rs.28.0mn) and Distilleries (Rs.25.6mn). further Odel-Rights, John Keells Holdings and Touchwood Investments traded heavily during the day. Odel-Rights commenced trading today and closed as the top gainer. Odel-Rights reached the high of Rs.1.10 and closed at Rs.0.50, up Rs.0.40 (+400%). Foreign participation was 27% of the total turnover and foreign investors were net buyers with a net inflow of Rs.29.3mn

During the week ASI lost by 55.86 points (-1.03%WoW) to end at 5,351.25 while liquid MPI dipped by 86.38 points (-1.74%%WoW) to close at 4,868.83. S&P SL 20 Index closed at 2,942.02, a drop of 25.29 index points (-0.85%WoW). Average daily market turnover was Rs.519.4mn (-62.9%WoW). Foreign participation for the week was 27.0%. At the end of the week foreign investors were the net buyers with a net foreign inflow of Rs.915.5mn.