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Jan 12, 2011

Sri Lanka All Share Price Index climbs 7,000 again

Since a slight fall in mid October 2010 after Sri Lanka’s All Share Price Index (ASPI) reaching 7,000 points, World’s best performing stock market again passed the 7,000 points on Wednesday the 12, January 2011 while privately owned Gas Company Laugfs Gas (LGL) continued to rally with renewed interest in few other Power & Energy related stocks. Foreign investors continued to be net sellers.

The All Share Price Index closed at 7,014.85 points, topped 0.32% through 22.14 points and the Milanka Price Index (MPI) closed at 7,327.227 points, rose 0.17% by 12.52 points as at end of trading day. Total turnover rose 26.62% at Rs.5.6 billion with a total of 299.06 million shares changing hands (up 73.6%) while there were 132 gainers and 84 listed losers during the day. Foreign purchases rose 116.47% to Rs.444.45 million and foreign sales rose 149.98% to Rs.955.84 million shifting the Price to forward Earnings Ratio (PER) by 0.38% to 26.6 times.

Brokers opined that widespread retail investor interest was seen compared with the institutional and high net worth individual trading in the market with profit taking in a few shares. Nearly 35 million of Panasian Power (PAP) shares changed hands closing the share at Rs.4.20 rising by 0.5% during trading hours.

Island nation’s Mercedes-Benz and ‘DIMO BATTA’ (Tata Ace) Diesel Truck seller Diesel & Motor Engineering (DIMO) was among the positive contributors to the market closing at Rs.1,350 up beating through Rs.215 that rose 18.37% whilst the Environmental Resources (GREG) closed at Rs.103 reaching up by Rs.5.70 at 5.81%.

Power & Energy and Bank, Finance & Insurance sectors were the highest contributors to the market turnover while both indices increased by 5.46% and 0.36% respectively. Laugfs Gas (LGL) made the highest contribution to the market turnover while the share price increased by Rs.5.10 (10.43%) and closed at Rs.52.90. Distilleries (DIST) also contributed to the market turnover with four crossings of 1,662,633 shares at Rs.178. However, share price decreased by Rs.0.90 (0.50%) and closed at Rs.180.80. Crossings were recorded for 426,000 shares of Laugfs Gas (Non-voting) (LGL.X) at Rs.47, and 571,000 shares of Ceylinco Insurance (Non-voting) (CINS.X) at Rs.300, and 345,500 shares of John Keells Holdings (JKH) at Rs.295, and 500,000 shares of Lion Brewery (LION.N) at Rs.190 and 75,000 shares of HNB Bank (HNB) at Rs.400.

LB Finance (LFIN) announced a capitalization of reserves of one (1) for one (1) share at Rs.10 per share.

European stock markets gained boosted by a report that the European Union is discussing plans to expand the Euro 440 billion bailout fund for indebted Euro-zone countries to contain the debt crisis. The key benchmark indices in France, Germany and UK rose by 0.32% to 1.33%; whilst the Portuguese government sold 1.25 billion Euros (US $1.62 billion) of government bonds, in a key test of credit markets amid speculation the country could eventually be forced to seek a fiscal bailout. Portugal's debt agency sold 650 million Euros of bonds maturing in 2014 and 599 million Euros of bonds maturing in 2020 and Official data showed that the German economy grew by a powerful 3.6% in 2010 which is the strongest performance since reunification two decades ago. Asian stocks rose as higher oil and metal prices buoyed commodity shares and a weaker yen boosted the outlook for Japanese export earnings. Key benchmark indices in Hong Kong, Taiwan, South Korea, Indonesia, Japan, Singapore and China rose by 0.11% to 2.88%.Trading in US index futures indicated that the Dow could rise 56 points at the opening bell on Wednesday, 12 January 2011.

Sri Lanka Secondary Debt Market Yeilds were down in the Treasury Bill primary auction. Secondary market Treasury bond yields slightly decreased, while the market activity was relatively high.

Sri Lankan Rupee appreciated slightly as the exchange rate was recorded at Rs.110.78 to Rs.110.80 per US Dollar.


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