June exciting month for brides, but not for CSE



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June, a popular month for weddings and the excitement, and sleepless nights that go hand-in-hand with a bride’s big day, but perhaps not so for the bourse as the stock exchange experienced dull sentiments overall. However, with both indices falling, a few players in the ‘den of gamblers’ may have had some sleepless nights as well.


We present the following excerpts from Bartleet Stockbrokers monthly stock exchange review for the month of June, 2011. Apart from the performance of the bourse, it looks at some other interesting economic data as well.


Market performance…


"The market witnessed unexciting sentiments throughout the month of June with both indices closing on negative notes. During the month the market witnessed the listing of several RFC’s by way of introduction in order to adhere to the CBSL rules. Lack of liquidity due to high valued IPOs, resulted the dull sentiments, in our view.


"The All Share Price Index (ASPI) declined by 592.13 (-8.0%) points MoM to close at 6825.94 points and the Milanka Price Index (MPI) declined by 552.59 (-8.1%) points MoM to close at 6301.02 points. The market recorded a total turnover of LKR 61,189mn and an average daily market turnover of LKR 2.9mn. The total volume of turnover was recorded at 4,634mn. Foreign investors had mixed sentiments during the month and emerged as net sellers, generating a net foreign outflow of LKR 776mn.


Inflation…


"In June 2011 the Department of Census and Statistics released a new series of the CCPI. The index is now computed on weights based on the expenditure patterns of households in the urban areas of the Colombo district as revealed in the Household Income and Expenditure Survey (HIES) 2006/2007. The new index will now consist of a more up-to-date weight structure which will reflect more recent changes in the pattern of expenditure and consumption.


"Inflation saw a MoM decrease to 7.1% in June 2011 in comparison to 8.2% in May 2011. The contribution to the decrease stemmed from the sub group of food and non alcoholic beverages. However, the prices of clothing and footwear, housing, water, electricity, gas and other fuels increased. The inflation on an annual average basis witnessed a marginal increase to 6.7% from 6.6% in May. The core inflationary level also rose to 8.7% on a YoY basis during the month compared to 8.4% in the month of May. (Source: www.cbsl.gov.lk)


Crude oil prices…


"Crude oil prices started off with moderate changes and soon started to plummet during the second half of June. WTI spot oil prices fell by 7.09% and Brent oil prices declined by 4.7%. The average prices in June declined by 4.6% for WTI spot oil and 1% for Brent oil compared to May. The standard deviation of the daily percentage changes in crude oil prices declined in comparison to May, but was still higher than recent months.


Copper prices…


"The copper prices for the month closed at an average price of USD 9,044.88, a 1.33% increase in comparison to May. It reached a high of USD 9,300.00 and a low of USD 8,894.50. The prices rose to a nine week high after the Greek parliament supported a European bailout, bolstering prospects for the metal demand.


Tea prices…


"The High Grown tea prices declined to LKR 307.58 from a previous LKR 309.09. The Medium and Low Grown recorded a price of LKR 309.02 and LKR 342.08 in comparison to LKR 308.64 and LKR 341.68 respectively. (Source: www.pureceylontea.com)


Rubber prices…


"Rubber prices experienced a dip with the TPC 1X falling to LKR 662.00 from the previous LKR 680.00. Skim crepe and RSS 2 grade rubber also declined to LKR 415.00 and LKR 481.00 due to increase in global rubber supply, in our view.


Tourist arrivals…


"Tourist arrivals for the month of May declined MoM by 30.4% to 48,943 in comparison to April. However, the YoY increase was 39.0%. Tourist arrivals from the South Asian region topped the arrivals number by recording 21,106 which is a 53.0% increase YoY, followed by the Western European region which recorded 12,419 arrivals a 17.4% increase YoY. (Source: www.sltda.lk).


 
 
 
 
 
 
 
 
 
 
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