Weekly outlook
In the coming week, the market stance relics steadier, Investors partaking is likely to improve particularly Local investors, this indicate that the market will remain stronger and sound.
Top active counters such as CRDB, DSE, TPCC, TBL, VODA and NICOL to continue to overshadow the next week’s transactions.
During the week, the market closed green on Friday after DSEI and TSI closed up by 0.76 per cent and 0.29 per cent respectively, thanks to CRDB, NICOL and TPCC share price increase, while market turnover increased to 1.98bn/- from 1.95bn/-.
The total market size increased by 114.21bn/-, while domestic market capitalization slightly increased by 26.24bn/-.
In midweek we expect Treasury bill auction to be held by the central bank. We may see undersubscription of the Treasury bill, as the yields decline shied out investors who are looking to invest in short-term.
The yields in short-term government instruments are expected to increase, with undersubscription expectation if yields will continue to decline further.
Furthermore, the Government securities yield curve will continue to remain normal, with expectations in the yields on treasuries will improve after reaching a resistance level especially.
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 increase and to be within a range of 3.50 per cent to 4.20 per cent with slight volatility in the high and low rate.
The Bourse
Total Market Capitalization increased by 0.76 per cent to 15.17tri/-from 15.06tri/-in the previous week, while Domestic Market Capitalization increased by 0.29 per cent to 9.05tri/- from 9.02tri/-in the previous week.During the week DSEI increased by 0.76 per cent closed the week at 1,828.10 points from 1,814.35 points in the previous week, while TSI increased by 0.29 per cent to close the week at 3,446.27 points from 3,436.28 points in the previous week, and Business and Financial index increased by 1.55 per cent to close the week at 2,212.67 points from 2,179.00 points. Industrial & Allied index and commercial services index remained flat at 4,814.19 points and 2,141.86 points, respectively.Companies whose share price decreased are as follows; JHL share price decreased by 7.77 per cent to 5,700/- from 6,180/-, NMG share price decreased by 5.41 per cent to 350/- from 370/-, and TCCL share price decreased by 10 per cent to 540/- from 600/-. On the other hand, EABL share price increased by 4.71 per cent to 3,560/- from […]
