8/3/2019 DNH Market Watch Daily 27.10.2011

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Daily

27th October 2011Market Indices Market Performance27.10.2011 25.10.2011 %Chg.

ASPI 6,324 6,346 -0.4MPI 5,651 5,654 -0.1Turnover (mn) 533.8 700.1 -23.8Foreign Purchases (mn) 140.4 97.6 43.8Foreign Sales (mn) 76.2 72.6 5.0Traded Companies 214 220 -2.7Market PER (X) 16.3 16.3 0.0Market Cap (LKR bn) 2,273 2,279 -0.3Market Cap (US$ bn) 20.5 20.5 -0.3Dividend Yield (%) 1.7 1.7 0.0Price to Book (X) 2.1 2.1 0.0

Market Outlook

Gainers /Losers (%)

Significant Trades (Turnover in LKR Mn)

Global Markets Interest Rates & CurrenciesIndex %Chg. 27.10.2011

Sri Lanka - ASPI 6324 -0.35 Prime Lending Rate (Avg. Weighted) 9.2%India - Sensex N/A N/A Deposit Rate (Avg. Weighted) 6.5%Pakistan - KSE 100 11283 -0.91 Treasury Bill Rate (360 Days) 7.3%Taiwan Weighted 7565 0.39 Dollar Denominated Bond Rate 6.3%Singapore - Straits Times 2848 2.80 LKR/US$ (Avg. Rate) 111.1Hong Kong - Hang Seng 19689 3.26 LKR/EURO (Avg. Rate) 156.0

Disclaimer 

 

   D   N   H

   M   A   R   K   E   T   W

   A   T   C   H

0

50

100

 JKH TFIL HVA RCL

11.9

10.0

7.7

6.5

-11.3

-9.6

-9.1

-9.0

Kotagala Plantations

Infrastructure Developers

Colombo Dockyard

Citizens Development (X)

Bogala Graphite

Talawakelle Tea Estates

SMB Leasing (W0015)

Union Assurance

5,500

5,700

5,900

6,100

6,300

6,500

6,700

       2       0        /       1       0        /       2       0       1       1

       2       1        /       1       0        /       2       0       1       1

       2       4        /       1       0        /       2       0       1       1

       2       5        /       1       0        /       2       0       1       1

       2       7        /       1       0        /       2       0       1       1

ASI

MPI

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The market continued to slide downwards with the ASPIand MPI losing 0.35% and 0.06% respectively to close the

trading session at 6,324 and 5,651. Turnover wasdisappointing declining to LKR534 bn with trading in JohnKeells Holdings, Trade Finance and HVA Foodsaccounting for 30% of the day’s total. Losers outpacedgainers with Bogala Graphite, Talawakelle Plantations andSMB Leasing (W0015) declining by 11.3%, 9.6% and 9.1%offsetting advances in Kotagala Plantations, InfrastructureDevelopers and Colombo Dockyard which rose by11.9%, 10.0% and 7.7% respectively. Newly debuted TradeFinance and Investment Ltd which had an IPO issue priceof LKR20/- meanwhile opened at LKR23/-, reached a highof LKR26/- before closing at LKR20/- with a total of 2.3million shares traded. Global markets traded largelyhigher on expectations that European policymakers mayreach an agreement on tackling the Greek debt crisis andamidst heightened speculation that China will ease

monetary policies.

Going into the budget season, we expect a number ofthemes to emerge over the next couple of weeks which willshape market trajectory; volatility in the global markets asthey continue to capitulate to US and Eurozone debttension, strong 3Q2011 corporate results releases showinga significant increase in the quality of earnings, decliningPE and PEG valuations which should trigger medium termbuying interest.

The convergence of all these factors will provide theperfect backdrop for the Sri Lanka bourse to commence itsre-rating despite the fact that there could be sporadicbumps along the way as we climb an upward slope.

For those investors that have a hybrid portfolio withexposure to both local and international equities, thecurrent global market environment provides a unique

opportunity to bottom fish across the emerging marketsspace as it is highly likely that the most markets have

over-reacted on the downside leaving a number ofextremely attractive stocks. In either case, we adviseinvestors to build a portfolio of both core and dynamicstocks