Weekly Market Analysis Report - 14/08/2020

summary of week’s market performance is as follows;

Index	Movement	Change (points)	Closing
ASPI	Up	85.51	5,261.99
S&P SL20	Up	92.91	2,320.10
Turnover (LKR)	11,427Mn
Share Volume	434.5Mn
Net Foreign outflow	(2,873Mn)

Performance of the Market

 Monday - Post-election profit taking and panic selling on LOLC due to its reported lower performances resulted sluggishness. ASPI lost 0.50%. S&P SL20 lost 0.75%. Turnover 672Mn.

 Tuesday – Investor confidence improved on introduced new culture on appointment of ministers and portfolio details (gazette). Strong buying interest noted on value stocks. ASPI gained 0.89%. S&P SL20 gained 0.96%. Turnover 2.69Bn.

 Wednesday – Bourse remained bullish with large transactions on Banks; New Cabinet, Russia’s claim of a vaccine and the collapse of Gold Prices contributed positively in boosting investor confidence. ASPI gained 0.47%. S&P SL20 gained 2.04%. Turnover 2.72Bn.

 Thursday – Exceptional performance of DIPD triggered a rally on its group companies, better earnings of SAMP further boosted confidence. Rally on ASPI beyond 5200 levels had attracted more investors. Foreign investor participation signalled a turnaround. ASPI gained 0.29%. S&P SL20 gained 0.87%. Turnover 1.92Bn.

 Friday – Investor focus improved on Banks due to better earnings and its future prospects. Some of the Manufacturing sector earnings were negative due to the impact of lock down during the period. ASPI gained 0.50%. S&P SL20 gained 1.0%. Turnover 3.41Bn

 Overall – Bourse remained bullish for the 4th straight week on the formation of strong government and its expansionary policies. Government focus on improving local economy by boosting local businesses and new employment, prevailing lower interest rates contributed positively in improving the investor confidence.

Source: Asha Securities weekly reports