The market continued to upwards gained 0.4% to close at 5078 with investors selectively picking up counters. Turnover at 617 mn with trading in HVA Foods, Cargills and PC House accounting for 30% of the day’s total.
Gainers outpaced losers with Nation Lanka Finance(W0021), SMB Leasing(X) and Huejay rising by 34.8%, 33.3% and 30.5% offsetting declines in Citizens Development(X), Shaw Wallace and Ramboda Falls which lost 10.7%, 10.5% and 10.1% respectively.
Consequently, we expect the market to achieve moderate growth in the medium term and view current market conditions as an opportunity for investors to gradually reenter the market as stock prices now more realistically reflect corporate fundamentals and fair values. We emphasize the need to select companies that are likely to report sustainable earnings growth going forward with top line revenues leading EPS growth.
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