28/02/2011 (Asiantribune.com) - Acuity Stockbrokers Research Ltd in their market review indicated that the All Share Price Index ( ASPI) gained 39.13 points or 0.51% during the week’s trading to close at 7711.62, while Milanka Price Index ( MPI) lost 72.81 points, amounting to 1.01% to close the week at 7242.16.

Total turnover for the week was LKR 12.71bn with daily averages amounting to LKR 2.54bn as against the daily average turnover recorded last week of LKR 3.89bn recording a decline of 34.8%. Trading volumes have been thin this week with a 17.25% decline in volumes traded.

Turnover has been driven by activity in the Banks, Finance and insurance sector which has contributed 20.35% to total turnover for the week amounting to LKR 2.58bn led by investor interest in Sampath Bank and Commercial Bank. The Manufacturing sector accounts for 19.26% of the weekly turnover amounting to LKR 2.45bn while the Diversified sector counters also have recorded a 15.89% contribution to the week’s turnover.

Trading on JKH amounts to 6.7% of the week’s turnover value with the share trading within a price range of LKR 289 and LKR 297 to close the week at LKR 290. Market activity by volume was led by the Manufacturing sector amounting to 31.94% while the Banking sector counters amounted to 23.33% of total volumes.

The Oil palm sector saw heavy retail interest during the past few weeks with the sector indices continuing to record substantial gains. Carson Cumberbatch Plc and Bukit Darah Plc announced its intention to make a voluntary offer to the minority shareholders of Shalimar, Goodhope, Selinsing and Indo Malay.

Colombo Pharmacy topped the list of Price Gainers this week, with the share price rising by 110.6% over previous week’s to close at LKR 3,790.90 from opening price of LKR 1800.00. Union Chemicals also recorded a 108.1% gain to close at LKR 667.00 which was the highest price recorded.

The other top gainers for the week were Industrial Asphalts, Convenience Foods and Eastern merchants.

Top losers for the week were Guardian Capital recording a 78.7% loss to close at LKR 1,942.20 from last week’s close of LKR 9,100. CIT closed the week at LKR 490.00 losing 20.2% from the previous week’s close of LKR 614.00 while Selinsing also recorded a 15.4% loss in its trading price to close at LKR 1100.00.

Foreigners remained sellers this week although with less pressure as week on week net selling dropped by 60.8%, with the daily average net selling of LKR 171 mn compared with last week’s daily average selling of LKR 438 mn. Average foreign purchase decreased by 74.9% to record daily average purchase at LKR 186 mn as against last week’s LKR 745 mn and average selling witnessed a decrease of 69% against last week with 1.7 mn recorded this week compared to last week’s LKR 1.18mn.

Piramal Glass saw continued investor interest with the scrip being the most traded this week with 57.3mn shares changing hands adding on a value of LKR 572.87mn to Turnover. The share was also one of the top gainers this week gaining 17.39% to close at LKR 10.80. SMB Leasing, Richard Pieris, Laugfs Gas and Nawaloka also was retail interest during the week.

Meanwhile Acuity in their point of view indicated that trading at the Colombo bourse this week was dominated by retail interest in selected stocks however, on thin volumes with the indices closing on a mixed note. They expect the current sentiment and momentum to continue into the week ahead.

An estimated 50 IPOs are planned in 2011 with approximately 10 to enter the market before April and the resulting increase in Market Capitalization will strengthen the bourse. The SEC has also announced plans for a growth focused regulatory framework for 2011, while reducing the 10% share price band restriction from 15 to 10 days and 50% credit issue also being waived. Minimum free float requirements and regulations on private placements prior to IPOs is also expected to strengthen investor confidence