Colombo stock market ended the week in green recording material gains for both indices with strong buying from local individual and institutional investors. John Keells Holdings, NDB Bank, Ceylon Tobacco, Chevron Lubricants and Commercial Bank boosted the market turnover with large parcels of shares changing hands. The benchmark All Share Price Index (ASPI) appreciated by 57.6 index points WoW to close at 1,896.0 and the more sensitive Milanka Price Index (MPI) jumped 98.3 index points to end at 2,061.4. Average daily turnover reported an impressive 145.3% WoW increase to Rs.307.1mn while the average volume settled at 9.0mn shares (+68.9% WoW). Foreigners ended the week as net sellers with a net foreign out flow of Rs.156.3mn. Foreign contribution to the total market activity was relatively law at 22.2%.

Market commenced the week on a positive note where ASPI increased marginally by 3.5 points to 1,841.9 while MPI gained 12.3 points to close at 1,975.4. NDB Bank was the key contributor for the day’s turnover with two parcels of (500,000 each) shares crossing hands at Rs.90.0. JKH’s turnover was also notable to the day’s performance with a total turnover of Rs.34.9mn including a crossing (200,000 shares @ Rs.73.50). Total market turnover was Rs.229.5mn.

The positive momentum sustained on Tuesday where ASPI increased 26.7 points to 1,868.6 and MPI 33.9 points to close at 2009.2. Relatively improvement in activity levels were witnessed while JKH actively contributed to the turnover with a total volume of 533,000 shares changing hands during the day. The day’s total Turnover amounted to Rs.297.8mn of which NDB contributed Rs.113.8mn as 1.3mn shares changed hands.

Yet again, the market depicted gains on Wednesday with ASPI advancing by 24.7 points to 1,893.3 and MPI gaining 37.5 points to stand at 2,046.7. Total market turnover amounted to Rs.370.9mn. JKH was the most contributor for the day with an over 40% contribution.

The market managed to close the short trading week in the green on Thursday despite some profit taking. ASPI increased 2.7 points to 1,896.0 and MPI also managed to gain 14.6 points to close at 2061.4.
Lanka Securities Research – Weekly – 07th May 2009 4
In the week ahead, we expect the market to be positive with declining interest rates on government securities (the benchmark for the country interest rates) and post war economic developments that are expected to attract funds to the country. However expected poor financial performance of companies might have an impact on the momentum.

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