Quiet week at the CSE
During the week the All Share Price Index (ASPI) declined by 98.65points to close at 5,550.88 points, while the Milanka Price Index (MPI) declined 53.61 points to close at 5,082.87 points. The daily average turnover was Rs.421mn compared to Rs.503mn reported during the previous week, and the week ended with foreign buying amounting to Rs.1,065mn whilst foreign selling was Rs.864mn.
On Monday the market reported a precipitous fall of 95.64 points on the ASPI and 46.39 points on the MPI. The bourse reported its lowest turnover in eleven weeks that was a mere Rs.257mn as investors sidelined amidst recent price weakness. The day’s largest turnover was reported from JKH which closed flat at Rs.207.00 posting Rs.39mn. Commercial Bank posted the day’s second largest turnover of Rs.21mn which was followed by Chevron Lubricants (LLUB) with a similar contribution.
On Tuesday the largest turnover was reported from Environmental Resources (GREG) which closed up at Rs.14.90 with 24.1mn shares traded of which 23.9mn shares (6.85% of issued capital) were bought by the foreign institution named Caledonian Securities increasing its stake in GREG to 13.12%. In addition to this purchase similar amount of its warrants W0003 and W0006 were also bought by the same institution at Rs.4.50 and 4.90. These three transactions alone posted Rs.587mn in turnover while the day’s total turnover reached Rs.973mn. Indices reported marginal gains of 2.88 points and 1.47 points respectively.
Market continued to be sluggish on Wednesday with total turnover being small as Rs.272mn while indices edged down by 13.52 points and 15.81 points respectively. Commercial Bank nonvoting share closed up Rs.2.00 at 92.00 and posted the day’s single largest turnover that amounted to Rs.62mn. Second largest turnover of Rs.48mn was reported from JKH which was followed by LLUB having closed down Rs.3.00 at Rs.197.00.
LLUB posted the day’s largest turnover on Thursday (Rs.31.6mn) and the share closed up Rs.3.00 at Rs.200.00. Distilleries Company closed up Rs.1.90 at Rs.141.90 and posted the second largest turnover for the day. Market activity level remained low with total turnover being limited to Rs.272mn while indices made moderate gains of 33.47 points and 28.42 points respectively.
On Friday the single largest turnover of Rs.164mn was reported from Ceylon Leather Products PLC (CLPL) where approximately 1.75mn shares traded between Rs.87.00 and 93.80 of which a block of 1.5mn traded at Rs.93.80 by way of a crossing. JKH posted the day’s second largest turnover while the contribution from the rest of the market remained subdue with total turnover reaching only Rs.315mn. The market closed down during the day with ASPI and MPI having lost ground by 25.84 points and 21.30 points respectively.
Except for the 7% transaction in GREG the overall activity level in the market was subdued as investors sidelined amidst weakening share prices. During the week approximately seven companies released their September quarter results reporting a better than expected performance. More quarterly financial results of companies are to be released in the coming week and we expect them to report a year on Year growth in profitability. This would attract more institutional and high net worth investors who are at present following a wait and see approach, to accumulate shares of fundamentally strong counters.