|DFCC stockbrokers (Pvt) Ltd.
Market & Business Highlights
Market overview: Indices continue upwards. Indices continued the upward movement this week. The ASI edged into the 500 level, to end the week at 501.5 up 5.89% while the MPI closed at 837.7, up 7.1%. Turnover for the week stood at a significant SL Rs. 1121.1Mn up 83% from lastweek. Foreigners were net buyers this week, with net foreign inflow amounting to SL Rs. 70.9Mn. Market activity was boosted by local retail trading and profit taking, while towards the latter part of the week activity was boosted by strategic moves on certain stocks.
The positive market activity, which was boosted by the news of a possible change in the political arena, given the significant number of crossovers of key government ministers to the opposition, continued to prevail this week. The market was primarily being driven by the positive sentiment with fundamentals not coming into play. We believe that this rally would continue at least over the next week or two or at least till the main political parties start focussing on election campaigning.
Once election fever hits a high we believe that investors are bound to be cautious. However in order to have a long-term positive impact on the equities market, the country would have to see stable government coming into place, urgency in policy implementation, significant reforms to stabilize the deteriorating macro economic environment and concrete steps towards restoring peace.
|NEWS | POLITICS | DEFENCE | FEATURES | OPINION | LEISURE | EDITORIAL | CARTOON | SPORTS|