Market momentum continued to decelerate last week as concerns surrounding certain Budget 2017 proposals weighed on investor sentiment, Acuity Stockbrokers said in their Share Market Weekly.
"The broad-share ASPI fell a further 73.9 points last week as retailers continued to look for direction and institutional/high net worth investors remained on the sidelines. Turnover levels meanwhile, continued to dwindle, with daily average turnover levels remaining in the LKR 0.32-0.39Bn range for the fifth consecutive week," the report said.
It noted that turnover levels which have averaged ~LKR 0.75Bn over the first nine months of the year have fallen to ~LKR 0.4Bn over the months of October and November.
Corporate earnings from the recently concluded earnings season however, indicated stronger performance over the September quarter, with ~95% of the market recording earnings totalling LKR 60Bn.
"The increase of ~25% Y-o-Y was helped largely by strong performance by Banks, Insurance, Manufacturing, Telecos, F&B and Hotels & Travels," Acuity said. "The Diversified sector however lost 27% Y-o-Y to LKR4.3Bn (cf. LKR 5.9Bn in Sept’15) while the Construction sector lost 15% Y-o-Y over the quarter to LKR 0.7Bn (cf. LKR 0.8Bn in Sept’15).
The report projected that markets in the week ahead are likely to remain dull, with investor’s looking for direction from this week’s monetary policy decisions.
"The broad-share ASPI fell a further 73.9 points last week as retailers continued to look for direction and institutional/high net worth investors remained on the sidelines. Turnover levels meanwhile, continued to dwindle, with daily average turnover levels remaining in the LKR 0.32-0.39Bn range for the fifth consecutive week," the report said.
It noted that turnover levels which have averaged ~LKR 0.75Bn over the first nine months of the year have fallen to ~LKR 0.4Bn over the months of October and November.
Corporate earnings from the recently concluded earnings season however, indicated stronger performance over the September quarter, with ~95% of the market recording earnings totalling LKR 60Bn.
"The increase of ~25% Y-o-Y was helped largely by strong performance by Banks, Insurance, Manufacturing, Telecos, F&B and Hotels & Travels," Acuity said. "The Diversified sector however lost 27% Y-o-Y to LKR4.3Bn (cf. LKR 5.9Bn in Sept’15) while the Construction sector lost 15% Y-o-Y over the quarter to LKR 0.7Bn (cf. LKR 0.8Bn in Sept’15).
The report projected that markets in the week ahead are likely to remain dull, with investor’s looking for direction from this week’s monetary policy decisions.
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