Weekly Stock Market Analysis Report - 11/09/2020

Summary of week’s market performance is as follows;

Index	Movement	Change (points)	Closing
ASPI	Up	127.49	5,438.91
S&P SL20	Up	37.67	2,359.24
Turnover (LKR)	9452.7Mn
Share Volume	518.7Mn
Net Foreign outflow	(1,964Mn)

Performance of the Market

•  Monday – Week started with sluggishness; speculative rally noted on low price stocks. Banks remained under pressure; Import restrictions on Tile, Tyre.. contributed positively for local manufacturers. ASPI lost 0.01%. S&P SL20 lost 0.59%. Turnover 757Mn.
•  Tuesday – Bourse remained sluggish due to foreign outflows, rally on low value stocks continued for the third straight session. Interest on large caps during latter part of the session turned the ASPI positive. ASPI gained 0.10%. S&P SL20 lost 0.01%. Off board deals contributed 33% of the turnover of 1.26Bn.
•  Wednesday – Local activities improved following the Central Bank directives on shareholder limits of Banks and the news on improvements in loan disbursements. JKH has contributed over 55% of the day’s turnover. ASPI gained 1.02%. S&P SL20 gained 1.18%. Off board deals contributed to 41% of the turnover of 3.13Bn.
•  Thursday – Bourse turned bullish following the signals on adaption of expansionary fiscal policy by the government. Poultry sector counters noted with higher level of activities following the government’s interest of banning cattle slaughter. ASPI gained 0.54%. S&P SL20 gained 0.35%. Turnover 2.27Bn.
•  Friday – Bourse started the session on a bullish note, poultry sector counters witnessed slight profit taking and weighed on the momentum. During the latter part of the session activities improved, price appreciation noted across the board. ASPI gained 0.73%. S&P SL20 gained 0.70%. Turnover 1.64Bn.
•  During the week – ASPI fluctuated within the range of 5,306.58 - 5,447.53 points; continuing net foreign outflows weighed on the investor sentiments but prevailing lower interest rates contributed positively. Investor confidence improved towards latter part of the week on confidence of gradual economic recovery.

Adopted from Asha Securities analysis reports.