IN the coming week, like previous week there could be an increase in market activities during this End of year and Christmas season due to end of year sell-off to meet obligations.
The market will remain active during the week and mainly from the top local active counters. Even though it remains a mystery to justify JATU PLC’s demand at the bourse it is likely that it may remain active for some coming trading sessions, as we have seen the price skyrocket to 920/- as of the close of the week.
Other top counters expected to transact during the week include TBL, CRDB, TPCC, NICOL and DSE. In midweek we expect a 20-year Treasury bond auction to be held by the central bank.
There could be slight increase in the WAY with low volatility towards decline in yields for the Long-term instruments due to obligations in this festival, with high likelihood of oversubscription but at minimal amount compared to previous auctions. Hence the increase in yields outweighs the decline in the coming auction.
The demand for this instrument is still high and its expected to remain high in the coming auction. In the interbank money market, notwithstanding the increase in the Weighted average rate (WAR) during the previous week, we still reiterate foresee that WAR will continue to be stable and within a range of 3.50 per cent to 4.00 per cent with slight volatility in the high and low rate.
The Bourse During the week, total market capitalisation slightly gained by 0.083 per cent to close the market at 14.85tri/- from 14.84tri/- in the previous week mainly due to share price appreciation of locally listed firms at the bourse.
CRDB share price increased by 2.70 per cent to close at 190/-, JATU share price increased by 29.58 per cent to close at 920/-, NICOL share price increased by 5.56 per cent to close at 190/-, NMG share price increased by 3.23 per cent to close at 320/- while Jubilee Holdings lost 0.71 per cent to close at 5,560/-.
Domestic market capitalisation increased by 0.15 per cent thanks to share price appreciation of JATU, CRDB and NICOL. The TSI gained 0.15 per cent to close at 3,482.92 points, DSEI gained 0.083 per cent to close at 1,789.19 points, Industrial & allied index gained 0.008 per cent to close at 4,828.87 points, Bank, Finance and Investment Index (B&F) gained 0.71 per cent to close at 2,314.14 points […]