Quote for the day

 “Throughout my trading career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.” -  Larry Hite

LSL Market Review 28th Feb 2013

Losses on Ceylon Tobacco Company and John Keells Holdings saw indices driven lower. Leisure conglomerate Aitken Spence saw almost 6.5m shares trade on the normal board contributing more than 50% of today’s turnover. Earlier Commercial Bank and Sampath Bank had reported exceptional 4th quarter results.

ASI lost 38.57 points (0.68%) to close at 5,635.90 and the S&P SL20 index lost 16.43 points (0.51%) to close at 3,194.39. Turnover was Rs. 1,430.6Mn.

Top contributors to turnover were Aitken Spence with Rs. 770.6Mn, DFCC with Rs. 184.6Mn and John Keells Holdings with Rs. 60.5Mn. Most active counters for the day were Central Investments & Finance, Commercial Bank and Touchwood Investments.

Notable gainers for the day were Asiri Surgical up by 5.6% to close at Rs. 9.40, Ceylon Cold Stores up by 5.3% to close at Rs. 134.00 and Sunshine Holdings up by 4.2% to close at Rs. 27.50. Notable losers for the day were Ceylinco Insurance non-voting down by 10.3% to close at Rs. 280.00, The Finance down by 10.0% to close at Rs. 12.60 and Renuka Holdings down by 6.6% to close at Rs. 32.50.

Cash map for today was 81.92%. Foreign participation was 75.4% of total market turnover whilst net foreign selling was Rs. 20.7Mn.

Quote for the day

“Do not anticipate and move without market confirmation—being a little late in your trade is your insurance that you are right or wrong.” -  Jesse Livermore

LSL Market Review 27th Feb 2013

Indices rebounded from yesterday’s steep drop helped by gains on banking and financials. CTC dropped in today’s trading as well, as investors feel the counter may be overvalued at these current prices. However, market continues to offer plenty of opportunities for bargain hunters whilst retailers continue to be muted. Yields on treasury bills remained at previous levels for the second week running which should indicate that rates should hold steady at the rates.

ASI gained 4.99 points (0.09%) to close at 5,674.47 and the S&P SL20 index gained 8.61 points (0.27%) to close at 3,210.82. Turnover was Rs. 623.1Mn.

Top contributors to turnover were Hatton National Bank with Rs. 154.4Mn, Commercial Bank with Rs. 126.0Mn and Dialog with Rs. 46.3Mn. Most active counters for the day were Commercial Bank, Sampath Bank and Central Investments & Finance.

Notable gainers for the day were Union Assurance up by 5.8% to close at Rs. 92.00, Regnis up by 5.1% to close at Rs. 64.20 and Tess Agro up by 4.8% to close at Rs. 2.20. Notable losers for the day were Laxapana down by 3.8% to close at Rs. 5.10, People’s Leasing & Finance down by 3.6% to close at Rs. 13.50 and CT Holdings down by 3.6% to close at Rs. 135.00.

Cash map for today was an improved 62.10%. Foreign participation was 24.43% of total market turnover whilst net foreign outflow was Rs. 107.2Mn.

Why do Stock Prices go Up and Down?

We'll give you the short answer first!

Stocks go up because more people want to buy than sell.  When this happens they begin to bid higher prices than the stock has been currently trading.  On the other side of the same coin, stocks go down because more people want to sell than buy.  In order to quickly sell their shares, they are willing to accept a lower price.

Having said this, we'll take a look at the various reasons that cause traders to want to buy or sell a stock.

It is possible to look at the financial statements of a company and determine what the company is worth.  Investors who take this approach are said to examine the company's "fundamentals".  They attempt to find an undervalued stock - one that is trading below it's "book value".  They feel that sooner or later other traders will realize that the company is worth more than the current price and begin bidding it up.

Another investment psychology it called the "technical approach".  This is when traders closely examine charts of the stock's past performance looking for trends that they feel will be repeated in the near future.  These traders also look at what is happening in the market as a whole trying to anticipate the effect it will have on an individual stock.

Sometimes companies trade at half their "book value" while at other times they may trade at double, triple, or even higher.  When this happens it can create some sudden and large price swings.  This volatility is what makes it possible to make large profits in the market.  It is also responsible for huge losses.

The stock market is essentially a giant auction where ownership of large companies is for sale.  If some investors think that a particular company will be a good investment, they are willing to bid the price up.  By the same token, when many investors want to sell a stock at the same time the supply will exceed the demand and the price will drop.

Watching the stock market can be likened to watching a ball bounce.  It goes up and comes down and then goes right back up.  This can be extremely frustrating for many investors who want it to go up in a steady pattern.  It is this volatility in the market as a whole and in the individual stocks that the experienced trader profits from.  In the absence of a lot of experience, the individual investor needs a proven source of information and direction. 

Many investors (as opposed to traders) have a "buy and hold" philosophy.  This would work well in a constantly rising market.  Unfortunately, the stock market does not go up in a straight line.  There are ups and downs that frustrate this type of investor.  Today many investors have become "traders" who buy and sell on the fluctuations of the market and the individual stocks.  These traders make money in any market - up or down!

Another well known investment site www.fool.com lists the following reasons for stocks going up and down:

Why Stocks Go Up

• growing sales and profits
• a great new president hired to run the company
• an exciting new product or service is introduced
• more exciting new products or services are expected
• the company lands a big new contract
• a great review of a new product in the press or on TV
• the company is going to split its stock
• scientists discover the product is good for something else
• some famous investor is buying shares
• lots of people are buying shares
• an analyst upgrades the company, changing her recommendation from, for instance, "buy" to "strong buy"
• other stocks in the same industry go up
• a competitor's factory burns down
• the company wins a lawsuit
• more people are buying the product or service
• the company expands globally and starts selling in other countries
• the industry is "hot" -- people expect big things for good reasons
• the industry is "hot" -- people don't understand much about it, but they're buying anyway
• the company is bought by another company
• the company might be bought by another company
• the company is going to spin-off part of itself as a new company
• rumors
• for no reason at all

Why Stocks Go Down

• profits slipping, sales slipping
• top executives leave the company
• a famous investor sells shares of the company
• an analyst downgrades his recommendation of the stock, maybe from "buy" to "hold"
• the company loses a major customer
• lots of people are selling shares
• a factory burns down
• other stocks in the same industry go down
• another company introduces a better product
• there's a supply shortage, so not enough of the product can be made
• a big lawsuit is filed against the company
• scientists discover the product is not safe
• fewer people are buying the product
• the industry used to be "hot," but now another industry is more popular
• some new law might hurt sales or profits
• a powerful company enters the business
• rumors
• no reason at all

Source: http://www.stock4today.com

Quote for the day

"A market is the combined behavior of thousands of people responding to information, misinformation and whim." - Kenneth Chang

LSL Market Review 26th Feb 2013

Market started on a negative note as negative developments in the macro-economic front and motions against Sri Lanka at the UNHCR factored in during today’s trading. Most blue-chips lost ground as retail selling also picked up. Private deals on blue-chips helped buoy turnover levels. The market is developing into a buyers’ market whereby opportunities for bargain hunting will arise.

ASI lost 66.13 points (1.15%) to close at 5,669.48 and the S&P SL20 index lost 27.86 points (0.86%) to close at 3,195.42. Turnover was Rs. 714.0Mn.

Top contributors to turnover were John Keells Holdings with Rs. 236.6Mn, Commercial Bank with Rs. 143.9Mn and Nations Trust Bank with Rs. 56.5Mn. Most active counters for the day were Touchwood Investments, AIA Insurance and Commercial Bank.

Notable gainers for the day were AIA Insurance up by 13.9% to close at Rs. 336.00, Piramal Glass up by 1.6% to close at Rs. 6.20 and Citrus Leisure up by 1.6% to close at Rs. 20.60. Notable losers for the day were Orient Garments down by 12.8% to close at Rs. 8.90, Citrus Leisure warrant-19 down by 10.0% to close at Rs. 2.70 and Capital Guardian partners down by 7.5% to close at Rs. 38.50.

Cash map for today was 36.91%. Foreign participation was 40.57% of total market turnover with net foreign inflow of Rs. 361.0Mn.

Quote for the day

“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic”-  Warren Buffett

LSL Weekly Roundup 22nd Feb 2013

Negative implications of the West-backed human rights proceedings coupled with profit taking hit the indices in this week trading. Although the former point was accounted for during last year’s bearish trend, further proceedings by the West has hurt Sri Lanka’s image. We witness a mixed bag of results from the December 2012 quarter although companies in specific industries which are positioned to outperform others have posted improved results. A period of stock picking is upon us as we can expect a slight bearish trend in the near term.

ASI lost 55.67 points on Monday (-0.95%) to close at 5,774.59 and the S&P SL20 index lost 24.97 points (-0.76%) to close at 3,249.28. Turnover was Rs. 869.8Mn. Top contributors to turnover were John Keells Holdings with Rs. 357.8m, Asiri Surgical with Rs. 145.5m and Hatton National Bank with Rs. 48.9m. Most active counters for the day were Touchwood Investments, Central Investments & Finance, and Richard Pieris.

Indices closed lower again Tuesday with many blue-chips losing ground whilst John Keells Holdings managing to hold steady. Large deals on banking counters Hatton National Bank and Commercial Bank helped to boost turnover on day dominated by blue-chips.

ASI lost 37.11 points (0.64%) to close at 5,737.48 and the S&P SL20 index lost 10.71 points (0.33%) to close at 3,238.57. Turnover was Rs. 1,520.3m. Top contributors to turnover were Hatton National Bank with Rs. 799.5m, Commercial Bank with Rs. 281.0m and John Keells Holdings with Rs. 197.6Mn. Most active counters for the day were Central Investments & Finance, Sampath bank and John Keells Holdings.

Interest on John Keells Holdings failed to lift up spirits at the CSE Wednesday as the overall market was sluggish. A handful of blue-chips such DFCC, NDB, Ceylon Tobacco Company and Chevron Lubricants also gained ground. It seems buying interest is only evident in fundamentally sound blue-chips during the past few weeks. Yields on treasury bills were flat across all three maturities which might indicate that the interest rates will stabilize at prevailing levels.

ASI dipped 6.94 points (0.12%) to close at 5,730.54 and the S&P SL20 index lost 13.72 points (0.42%) to close at 3,224.85. Turnover was Rs. 763.5m.

John Keells Holdings was the bright light in a sluggish market as it helped to minimize the losses on the indices on Thursday. It reached a 52-week high of Rs. 235.30 with a block trade done at Rs. 235.00 whilst also contributing around 68% of the turnover. Banking stalwart Sampath Bank saw its share value plummet by Rs. 7.40 or 3.16% to Rs. 227.00. The counter’s price was partly driven by foreign accumulation and interest in the very recent past.

ASI dipped 4.43 points (0.08%) to close at 5,726.11 and the S&P SL20 index lost 5.35 points (0.17%) to close at 3,219.50. Turnover was Rs. 484.4Mn.

Further gains from John Keells Holdings managed to uplift the sentiment with Hatton National Bank and Commercial Bank also managing to close higher on Friday. HNB announced a Rs. 7.00 dividend today. Ceylon Tobacco Company saw its share value drop by around 2.1% to Rs. 800.00. As many counters are showing bearish trends, it is an ideal opportunity to buy at relatively lower prices and thereby benefiting from cyclical movements.

ASI gained 9.50 points (0.17%) to close at 5,735.61 and the S&P SL20 index gained 10.72 points (0.33%) to close at 3,223.28. Turnover was Rs. 300.1m. Top contributors to turnover were John Keells Holdings with Rs. 98.6m, Access Engineering with Rs. 22.8m and Tokyo Cement non-voting with Rs. 21.3m. Most active counters the day were Touchwood Investments, Hatton National Bank non-voting and Sampath Bank.

Notable gainers for the day were Nation Lanka Finance warrant 21 up by 6.3% to close at Rs. 1.70, Free Lanka Capital Holdings up by 4.0% to close at Rs. 2.60 and Panasian Power up by 3.7% to close at Rs. 2.80.

Notable losers for the day were Touchwood Investments down by 11.5% to close at Rs. 5.40, Dankotuwa Porcelain down by 3.2% to close at Rs. 15.00 and Citrus leisure warrant 19 down by 3.1% to close at Rs. 3.10.

Cash map for today was 51.48%. Foreign participation was 23% of total market turnover whilst net foreign buying was Rs. 94m.

12 Market Wisdoms From Gerald Loeb

1. The most important single factor in shaping security markets is public psychology.

2. To make money in the stock market you either have to be ahead of the crowd or very sure they are going in the same direction for some time to come.

3. Accepting losses is the most important single investment device to insure safety of capital.

4. The difference between the investor who year in and year out procures for himself a final net profit, and the one who is usually in the red, is not entirely a question of superior selection of stocks or superior timing. Rather, it is also a case of knowing how to capitalize successes and curtail failures.

5. One useful fact to remember is that the most important indications are made in the early stages of a broad market move. Nine times out of ten the leaders of an advance are the stocks that make new highs ahead of the averages.

6. There is a saying, "A picture is worth a thousand words." One might paraphrase this by saying a profit is worth more than endless alibis or explanations. . . prices and trends are really the best and simplest "indicators" you can find.

7. Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed.

8. Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival.-

9. In addition to many other contributing factors of inflation or deflation, a very great factor is the psychological. The fact that people think prices are going to advance or decline very much contributes to their movement, and the very momentum of the trend itself tends to perpetuate itself.

10. Most people, especially investors, try to get a certain percentage return, and actually secure a minus yield when properly calculated over the years. Speculators risk less and have a better chance of getting something, in my opinion.

11. I feel all relevant factors, important and otherwise, are registered in the market's behavior, and, in addition, the action of the market itself can be expected under most circumstances to stimulate buying or selling in a manner consistent enough to allow reasonably accurate forecasting of news in advance of its actual occurrence.

12. You don't need analysts in a bull market, and you don't want them in a bear market.

Source: http://www.zerohedge.com

Colombo Bourse loses steam as world stocks stumble....

The week concluded on a negative note with the All Share Price Index plunging WoW owing to retail profit taking, whilst crossings drove the week’s turnover and volume levels. The ASI lost 94.7 points WoW to close at 5,735.6 points (-1.6%), whilst the S&P SL 20 Index lost 50.9 points WoW to close at 3,223.3 points (-1.6%). Indices lost mainly on the back of the losses made by Ceylon Tobacco Company (--3.4% WoW), Dialog Axiata (-4.2% WoW), Bukit Darah (-3.8% WoW), Sampath Bank (-6.2% WoW) and Aitken Spence (-3.6% WoW).

The week prolonged last week’s sluggish momentum with weekly turnover levels remaining below par. A similar momentum was also witnessed in most of international stocks. MSCI world index which measures the stock market performance of developed countries witnessed a WoW dip of circa 1.1%. Most European stocks stumbled due to the regions weak recovery process from the recession, while the US official data showed an increase in the country’s unemployment rate which would have also contributed to the lacklustre momentum. MSCI frontier market index which measures the stock market performance of frontier markets also witnessed a marginal dip of circa 0.3% WoW.

Entities continued releasing their December financial results this week which on average has been below expectations, as most companies have witnessed a slowdown in their business activities during the quarter. In addition IMF revised down growth rates for Sri Lanka due to high inflation risk and lower tax revenue collection, coupled with the impending hearing at the United Nations Human Rights Council (UNHCR).

During the week, investor focus was centred upon selected Bank, Finance and Insurance and Diversified counters with each sector contributing a circa 48% & 30% to the week’s turnover respectively. Hatton National Bank spearheaded the market contributing circa 30% of the weekly turnover along with the announcement of an attractive final dividend further enhancing value of the counter. The share also encountered positive news during the week where the government obtained the cabinet approval to borrow from Hatton National Bank to finance two colossal infrastructure projects.

Hence all three investor groups were seen active on the above high cap banking counter.

Further, John Keells Holdings also continued to gain investor interest where the counter witnessed several off market deals during the week. John Keells Holdings made a price gain of 3% WoW to reach a 52 week high of LKR236.50 on Friday. Commercial Bank of Ceylon also witnessed heavy investor play during the week where both institutional and retail investors were active on the counter. In addition, Ceylon Tobacco Corporation, Asiri Surgical Hospital and Sampath Bank also joined the top turnover calibre during the week.

Top contributors to the weekly volume consist of Asiri Surgical Hospital, Hattion National Bank, Seylan Merchant Bank and Dialog Axiata. The average daily turnover for the week was LKR787.5mn mn whilst the average daily volume was 108.3mn shares.

Significant foreign investor interest was observed over the week with foreign purchases amounting to LKR2,664.6 mn,whilst foreign sales amounted to LKR1,950.7 mn. Market capitalisation stood at LKR2,199.8 bn, and the YTD performance is 1.6%.

Conclusion

Short term uncertainty results in low investor activity..

Sentiments at the Colombo Bourse appears to have witnessed an about-face during the week with both the ASI & S&PSL20 index losing

considerable value and the YTD performance of the ASI falling below 2%. This has been accompanied by a marked decline in turnover and volumes for the week compared to the previous weeks. This decline may be a response to a combination of factors including; weaker than expected quarterly earnings results, the IMF’s decision to revise down its GDP growth forecasts of Sri Lanka for 2013E from 6.5% to 6.3% as well as the heightened political risk arising from the coverage surrounding the outcome of United Nations Human Rights Council (UNHRC) decision. Further, the recent decision to prevent the outright sale of private land to non-citizens may not augur well for foreign activity in the Colombo Bourse. While investors revise down their expectations to take into account short term weaknesses in the economy, institutional & foreign interest continues to be sustained in large cap blue chip counters which are perceived to have high growth prospects. The IMF too concedes that while short term weaknesses persist with respect to the economy’s fiscal deficit and BOP position, the economy has achieved sufficient structural changes to enable it to maintain its current growth trajectory, which the IMF projects to be the highest for the South Asian region. Hence we expect earnings of fundamentally sound counters to be consistent in line with these growth prospects and hence we reiterate that investors should maintain a long term view of investing to maximise their returns.

Source: Weekly Review by Asia Wealth Management Research

Quote for the day

“Accepting losses is the most important single investment device to insure safety of capital.” - Gerald Loeb

LSL Market Review 22nd Feb 2013

Quote for the day

"Human emotion is both the source of opportunity in trading and the greatest challenge. Master it and you will succeed. Ignore it at your peril." -  Richard Dennis 

LSL Market Review 21st Feb 2013

John Keells Holdings was the bright light in a sluggish market as it helped to minimize the losses on the indices. It reached a 52-week high of Rs. 235.30 with a block trade done at Rs. 235.00 whilst also contributing around 68% of the turnover. Today’s price appreciation was driven by foreign interest. Banking stalwart Sampath Bank saw its share value plummet by Rs. 7.40 or 3.16% to Rs. 227.00. The counter’s price was partly driven by foreign accumulation and interest in the very recent past.

ASI dipped 4.43 points (0.08%) to close at 5,726.11 and the S&P SL20 index lost 5.35 points (0.17%) to close at 3,219.50. Turnover was Rs. 484.4Mn.

Top contributors to turnover were John Keells Holdings with Rs. 327.6Mn, Commercial Bank with Rs. 19.0Mn and Dialog Axiata with Rs. 15.6Mn. Most active counters for the day were John Keells Holdings, Touchwood Investments and PC House.

Notable gainers for the day were SLT up by 3.5% to close at Rs. 44.90, Regnis up by 3.4% to close at Rs. 61.00 and Kotmale Holdings up by 2.9% to close at Rs. 35.50. Notable losers for the day were CIC Holdings down by 5.2% to close at Rs. 58.80, PC House down by 4.3% to close at Rs. 4.50 and Citrus Kalpitiya down by 3.3% to close at Rs. 5.90.

Cash map for today was a disappointing 29.96%. Foreign participation was 43.47% of total market turnover with net foreign buying at Rs. 296.6Mn.

Quote for the day

"You can never predict when that unknown torpedo will come out of the dark and smash the price of a stock." -  Ralph Seger

LSL Market Review 20th Feb 2013

Interest on John Keells Holdings failed to lift up spirits at the CSE today as the overall market was sluggish. A handful of blue-chips such DFCC, NDB, Ceylon Tobacco Company and Chevron Lubricants also gained ground. It seems buying interest is only evident in fundamentally sound blue-chips during the past few weeks. Yields on treasury bills were flat across all three maturities which might indicate that the interest rates will stabilize at prevailing levels.

ASI dipped 6.94 points (0.12%) to close at 5,730.54 and the S&P SL20 index lost 13.72 points (0.42%) to close at 3,224.85. Turnover was Rs. 763.5Mn.

Top contributors to turnover were Hatton National Bank with Rs. 311.2Mn, Ceylon Tobacco Company with Rs. 189.2 and John Keells Holdings with Rs. 68.8Mn. Most active counters for the day were Touchwood Investments, Hemas Holdings and Central Investments & Finance.

Notable gainers for the day were C.W. Mackie up by 5.3% to close at Rs. 70.00, Hemas Holdings up by 5.1% to close at Rs. 28.70 and Asia Asset Finance up by 4.2% to close at Rs. 2.50. Notable losers for the day were Touchwood Investments down by 7.6% to close at Rs. 6.10, Nawaloka Hospitals down by 6.5% to close at Rs. 2.90 and Panasian Finance down by 3.6% to close at Rs. 2.70.

Cash map for today was 52.78%. Foreign participation was 55.28% of total market turnover and net foreign outflow was Rs. 223.97Mn.

Quote for the day

“Don’t get in a shoot-out 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

LSL Market Review 19th Feb 2013

Indices closed lower again today with many blue-chips losing ground whilst John Keells Holdings managing to hold steady. Large deals on banking counters Hatton National Bank and Commercial Bank helped to boost turnover on day dominated by blue-chips. A period of stock picking is upon us as we can expect a slight bearish trend in the near term.

ASI lost 37.11 points (0.64%) to close at 5,737.48 and the S&P SL20 index lost 10.71 points (0.33%) to close at 3,238.57. Turnover was Rs. 1,520.3Mn.

Top contributors to turnover were Hatton National Bank with Rs. 799.5Mn, Commercial Bank with Rs. 281.0Mn and John Keells Holdings with Rs. 197.6Mn. Most active counters for the day were Central Investments & Finance, Sampath bank and John Keells Holdings.

Notable gainers for the day were Dunamis Capital up by 6.9% to close at Rs. 12.40, Asia Asset Finance up by 4.2% to close at Rs. 2.50 and Pan Asian Power up by 3.70% to close at Rs. 2.80. Notable losers for the day were City Housing down by 5.0% to close at Rs. 13.20, Dankotuwa Porcelain down by 4.9% to close at Rs. 15.70 and Lankem Ceylon Down by 4.3% to close at Rs. 155.00.

Cash map for today was 34.75%. Foreign participation was 68.76% of total market turnover whilst net foreign buying was Rs. 301.1Mn.

Quote for the day

“This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing."-  David Tepper 

LSL Market Review 18th Feb 2013

Negative implications of the West-backed human rights proceedings coupled with profit taking hit the indices in today’s trading. Although the former point was accounted for during last year’s bearish trend, further proceedings by the West has hurt Sri Lanka’s image. We witness a mixed bag of results from the December 2012 quarter although companies in specific industries which are positioned to outperform others have posted improved results. Only the textile and footwear sector gained with all other sectors losing.

ASI lost 55.67 points (-0.95%) to close at 5,774.59 and the S&P SL20 index lost 24.97 points (-0.76%) to close at 3,249.28. Turnover was Rs. 869.8Mn.

Top contributors to turnover were John Keells Holdings with Rs. 357.8Mn, Asiri Surgical with Rs. 145.5Mn and Hatton National Bank with Rs. 48.9Mn. Most active counters for the day were Touchwood Investments, Central Investments & Finance, and Richard Pieris.

Notable gainers for the day were Eden Hotel up by 2.9% to close at Rs. 36.00, Blue Diamonds up by 2.7% to close at Rs. 3.80 and Odel up by 2.2% to close at Rs. 23.00. Notable losers for the day were Ceylon Cold Stores down by 9.1% to close at Rs. 125.50, Textured Jersey down by 8.8% to close at Rs. 9.30 and Kelani Cables down by 6.0% to close at Rs. 65.50.

Cash map for today was 51.18%. Foreign participation was 72.9% of total market turnover with net foreign buying at Rs.426.2Mn.

Quote for the day

“Whatever method you use to enter a trade, the most critical thing is that if there is a major trend, your approach should assure that you get in that trend.”- Richard Dennis 

LSL Weekly Roundup 8th Feb 2013

Quote for the day

"Wall Street is one big turf war, by benefiting one person you are disadvantaging another person." - Bernard Madoff  

LSL Market Review 07th Feb 2013

Market rallied on the back of institutional buying on blue-chips. Banking & financials again contributed immensely in terms of gains on the broader index and almost 55% of turnover. Sampath Bank was the highest gainer in the mentioned sector with the counter also witnessing retail activity.

Sampath Bank, Ceylon Cold Stores, E-Channeling and Dipped Products reached their 52 week highs today.

ASI gained 30.33 points (0.52%) to close at 5,810.42 and the S&P SL20 index gained 26.31 points (0.82%) to close at 3,273.70. Turnover was Rs. 1,534.3Mn.

Top contributors to turnover were Hatton National bank with Rs. 292.5Mn, John Keells Holdings with Rs. 277.9 and Sampath Bank with Rs. 199.1Mn. Most active counters for the day were Sampath Bank, Commercial and E-Channeling.

Notable gainers for the day were Dunamis Capital up by 13.6% to close at Rs. 12.50, Parquet up by 11.7% to close at Rs. 16.20 and Dipped Products up by 5.7% to close at Rs. 112.00. Notable losers for the day were Citizens

Development Bank down by 2.5% to close at Rs. 42.90, Tokyo Cement non-voting down by 1.6% to close at Rs. 18.50 and Union Bank down by 1.3% to close at Rs. 15.40.

Cash map was 48.72% which is significantly better than yesterday. Foreign participation was 63% of total market turnover whilst net foreign buying was Rs.160 Mn.

Quote for the day

“I always say that you could publish trading rules in the newspaper and no one would follow them. The key is consistency and discipline. Almost anybody can make up a list of rules that are 80 percent as good as what we taught people. What they couldn’t do is give them the confidence to stick to those rules even when things are going bad.”- Richard Dennis

LSL Market Review 06th Feb 2013

Gains on banking sector counters such as Commercial Bank and Sampath Bank failed to uplift the broader index as retail selling persisted throughout trading today. Foreigners were seen on the buying side of banking and financials such as Hatton National Bank, Commercial Bank and Sampath Bank. Yields on most treasury bills fell in today’s auction but a period of stable interest rates could be expected going ahead.

ASI fell points 1.21 points (0.02%) to close at 5,780.09 and the S&P SL20 gained 13.48 points (0.42%) to close at 3,217.39. Turnover was Rs1, 171.1Mn.

Top contributors to turnover were Hatton National Bank with Rs.658.3Mn, Commercial Bank with Rs.153.3Mn and Sampath Bank with Rs.74.6Mn. Most active counters for the day were Commercial Bank, Vallibel One and SMB Leasing von-voting.

Notable gainers for the day were Commercial Leasing & Finance up by 8.3% to close at Rs.3.90, Blue Diamonds up by 5.4% to close at Rs.3.90 and Ceylinco Insurance up by 5.2% to close at Rs.950.00. Notable losers for the day were Bimputh Lanka Finance down by 14.4% to close at Rs.15.50, Lanka Orix Finance down by 5.6% to close at Rs.3.40 and Richard Pieris down by 3.8% to close at Rs.7.60.

Cash map for today was 37.62% which is a slight improvement from yesterday. Foreign participation was 69.49% of total market turnover whilst net foreign selling was Rs.70.6Mn.

Quote for the day

“I will tell you I am good at trading. I am good at investing. I am good at making decisions. I am good at admitting mistakes and that’s my best trait. I am really, really good at admitting mistakes. And that’s to me the most important attribute that an investor, that a trader, that somebody who’s trying to make a living matching wits in the market can have is the ability to admit that they are wrong. That trumps all other concerns. Education doesn't seem to have that much viability to me. It’s the ability to say I'm wrong.” - Dennis Gartman 

LSL Market Review 05th Feb 2013

Turnover levels dropped in today’s session but foreigners still remain bullish on blue-chips. Commercial Bank, Aitken Spence and John Keells Holdings were the top foreign picks for the day with retail bullish sentiment picking up on Access Engineering. Retail participation still remains on the sidelines.

ASI dipped 18.39 points (0.32%) to close at 5,781.30 and the S&P SL20 index gained 7.10 points (0.22%) to close at 3,203.91. Turnover was Rs. 447.3Mn.

Top contributors to turnover were Commercial bank with Rs. 119.2Mn, John Keells Holdings with Rs. 76.1Mn and Aitken Spence with Rs. 52.2Mn. Most active counters for the day were Union Bank, Access Engineering and Commercial Bank.

Notable gainers for the day were Talawakelle Plantations up by 9.4% to close at Rs.27.90, Morison’s no-voting up by 4.3% to close at Rs. 109.60 and Free Lanka Capital Holdings up by 4.2% to close at Rs.2.50. Notable losers for the day were Touchwood Investments down by 4.8% to close at Rs.8.00, Asian Hotels & Properties down by 4.6% to close at Rs.72.50 and People’s Leasing & Finance down by 3.7% to close at Rs.13.00.

Cash map for today was 33.45%. Foreign participation was 49.6% of total market turnover whilst net foreign buying was Rs. 4.1Mn.

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 - 01st Feb 2013

Profit taking on retail driven counters saw the broader index losing ground on Monday whilst gains on a handful of blue-chips saw the S&P SL20 index gaining marginally. Premier blue-chip John Keells Holdings dominated turnover contributing more than 72%. The counter closed marginally higher at Rs. 225.00.

ASI lost 23.10 points (0.39%) to close at 5,855.09 and the S&P SL20 index gained 4.07 points (0.13%) to close at 3,194.72. Turnover was Rs. 759.6Mn.

On Tuesday, retail profit taking persisted whilst foreign picked up blocks in few blue-chips. A general feeling of retail selling was seen today although this is seen as a correction as foreigners still value our blue-chips whilst reduction in interest rates are also expected in the future. Sampath Bank, LOLC and John Keells Holdings were the top picks for the foreigners today.

ASI dropped 54.24 points (0.93%) to close at 5,800.75 and the S&P SL20 index lost 8.96 points (0.28%) to close at 3,185.76. Turnover was Rs. 1,351.0Mn.

Indices closed higher on Wednesday helped by gains on John Keells Holdings, Commercial Bank and Nestle. The former two counters and LOLC saw tremendous institutional interest with Commercial Bank being the pick of the day. Retail activity still remains on the sideline which is seen as a period of consolidation. Yields on all three treasury bills fell further in today’s auction.

ASI gained 25.15 points (0.43%) to close at 5,825.90 and the S&P SL20 index gained 7.87 points (0.25%) to close at 3,193.63. Turnover was Rs. 2,678.7Mn.

Thursday, Commercial Bank and John Keells Holdings continued attract institutional and high net worth investors with the two counters dominating today’s turnover. Retail investors seem to have settled down awaiting another bullish period. Foreign investors exiting certain companies shouldn’t be seen as a worrying issues as these shares are trading at attractive prices and local buying helps to retain future gains.

ASI dipped marginally by 9.01 points (0.15%) to close at 5,816.89 and the S&P SL20 index gained 3.98 points (0.12%) to close at 3,197.16. Turnover was Rs. 3,425.1Mn.On Friday, premier blue-chip John Keells Holdings and Commercial Bank continued to attract foreign and local institutional activity. John Keells ended up being the highest contributor to turnover. Retail activity remained dull today.ASI lost 17.20 points (0.30%) to close at 5,799.69 and the S&P SL20 index lost marginally by 0.80 points (0.03%) to close at 3,196.81. Turnover was Rs. 951.1Mn.

Top contributors to turnover were John Keells Holdings with Rs. 591.0, Commercial Bank with Rs. 177.9Mn and CT Holdings with Rs. 31.8Mn. Most active counters for the day were Union Bank, Commercial Bank and John Keells Holdings.Notable gainers for the day were CT Holdings up by 8.9% to close at Rs. 144.00, Browns Investments up by 5.9% to close at Rs. 3.60 and Browns Beach Hotel up by 5.8% to close at Rs. 20.00.. Notable losers for the day were Singer Sri Lanka down by 6.2% to close at Rs. 100.10, Renuka City Hotels down by 6.0% to close at Rs. 235.00 and Hotel Services down by 2.9% to close at Rs. 16.50.Cash map for today was 60.86%. Foreign participation was 47% of total market turnover whilst net foreign buying was Rs. 446Mn.