Market continues to struggle

6:11 PM // 0 comments // Lonely // Category: News During the short trading week the All Share Price Index (ASPI) lost 118.04 points to close at 7,456.82 points, while the Milanka Price Index (MPI) declined by 117.14 points to close at 6,947.11 points. The daily average turnover was SLRs. 1.7bn compared to SLRs. 3bn last week and the week ended with foreign buying amounting to SLRs. 450mn whilst foreign selling was SLRs.1.3bn

After an extended Sinhala and Hindu New Year holiday market resumed trading on Monday (18th) with Free Lanka Capital Holdings (FLCH) commencing trading in the secondary market. FLCH was the most heavily traded stock for the day with 89mn shares traded between SLRs.6.00 and SLRs.5.50 generating the day’s second largest turnover of SLRs.524mn. Hatton National Bank bought a 2.6% stake in its competitor National Development Bank by buying approximately 4.3mn shares at SLRs.161.20 from a US based foreign fund. This propelled NDB to report the day’s largest turnover of SLRs.700mn.

Commercial Development Company which closed up SLRs.41.20 (37%) at 151.20 was the day’s top gainer while the market closed with both ASPI and MPI closing down 27.07 points and 25.55 points respectively with a total turnover of SLRs.2.3bn.

Market declined for the second consecutive day on Tuesday with ASPI losing 72.63 points while MPI lost 93.91 points while the total turnover for the day amounted to 1.4bn. Aitken Spence was the highest contributor to the day’s turnover as State run Employees Provident Fund (EPF) bought 1mn shares at SLRs.165.50. Bairaha Farms and Brown & Company also made significant contributions with turnovers of SLRs.58mn and SLRs.53mn respectively. Free Lanka Capital Holdings continued to be heavily traded with the counter closing down at SLRs.5.60 with more than 16mn shares traded.

Employees Provident Fund invested further in Aitken Spence of Wednesday as the fund bought another 1mn share stake from the Carson Cumberbatch group at SLRs.165.50. EPF also invested a further SLRs.95mn in Aitken Spence Hotel Holdings.

Total turnover for the day amounted to SLRs. 1.88bn with Aitken Spence and Aitken Spence Hotel Holdings making the biggest contributions.

Central Finance Company which closed up SLRs.50.80 at SLRs. 1419.30 posted a turnover of SLRs. 127mn. Market closed on a negative note with ASPI declining marginally by 0.66 points while MPI lost 7.66 points.

On Thursday indices closed with mixed results with ASPI losing 17.68 points and MPI gaining 9.95 points.

Total turnover for the day amounted to SLRs.1.29bn with Ceylon Grain Elevators posting the day largest turnover of SLRs.100mn. Diesel & Motor Engineering PLC (DIMO) contributed with a turnover of SLRs. 91mn while the telecom giant Dialog Axiata posted a turnover of SLRs.82mn.

Technically the market remains weak with no buying pressure coming from participants despite the excellent economic fundamentals and company earnings. Due to the oversold nature of the market there is plenty of potential for the market to gather momentum and move up as soon as it gets an appropriate trigger to spur in to action.

source - www.dailymirror.lk