Acuity Stockbrokers Research Weekly Market Review :
CSE to upgrade its trading system today
The ASPI closed the week at 5422.33 points, down 0.49% (26.72 points)
from its previous week?s close. The MPI too recorded a week-on-week
decline of 0.34% (16.39 points) to close at 4847.86 points.
Counters that dominated turnover value for the week were Aitken
Spence Plc, JKH and Commercial Bank Plc, which collectively accounted
for 59.18% of total turnover value.
Aitken Spence Plc alone contributed 43.98% of the week?s total
turnover value as EPF sold a 5% stake in the company to a foreign buyer.
Weekly turnover value nevertheless recorded a dip of 70.27% to LKR
5.42bn compared to LKR 18.22bn recorded last week, averaging LKR 1.08bn.
Market Capitalization meanwhile declined 0.48% to LKR 1988.30bn relative
to last week?s value of LKR 1997.99bn. The Diversified sector accounted
for 66.76% of the market?s weekly turnover value, representing a value
of LKR 3.62bn. The Banking and Finance sector, backed by Commercial Bank
Plc, contributed 14.97% of the week?s turnover, (amounting to LKR
810.49mn) while the Manufacturing sector contributed LKR 264.86mn or
4.89% to total market turnover value.
Turnover volume for the week was also led by the Diversified sector
which contributed 39.90mn shares or 28.76% to total market volume. This
was followed closely by the Banking and Finance sector which accounted
for 24.73% (or 34.30mn shares) of the market?s share volume. The
Manufacturing sector meanwhile contributed 21.52% to total market volume
as 29.85mn shares changed hands over the week.
Industrial Asphalts (Ceylon) Plc recorded the highest price gain
(17.14%) over the week, closing at LKR 410.00 relative to its previous
close of LKR 350.00. Kegalle Plantations Plc closed at LKR 103.10, up
12.68% from last week?s close, while CDB[NV] gained 12.47% to close at
Hayleys Exports Plc and Namunukula Plantations Plc were also amongst
the top price gainers, recording gains of 12.14% and 11.67%,
respectively. This week?s top price loser was HDFC which declined 21.52%
to close at LKR 70.40 from to last week?s close of LKR 89.70. Coco Lanka
Plc [NV] trailed behind, closing at LKR 33.00, down 19.32% from last
week. Sigiriya Village Hotels Plc meanwhile, declined 19.05% to close at
Aitken Spence Plc led the volume list this week, accounting for
14.97% or 20.76mn shares of the week?s aggregate share volume. Blue
Diamonds and Blue Diamonds [NV] were also among the top contributors,
adding 9.50% and 8.03%, respectively.
Foreign investors remained net buyers yet again this week, recording
a net buying position of LKR 2.39bn relative to last week?s net buying
position of LKR 14.93bn. Total inflows of amounted to LKR 3.33bn, with
Aitken Spence accounting for a majority (LKR 2.40bn) of the week?s total
inflow. Total foreign sales meanwhile increased significantly by over
100% to LKR 937.31mn from last week?s LKR 283.06mn.
Markets slumped over the week as net foreign inflows which bolstered
volumes last week and on Monday dwindled over the week. By Friday
however, markets retracted some of its mid-week losses, with the Index
picking up 72 points and volumes hovering just under LKR 1.0bn. Retail
interest in the market should revive next week as the CSE upgrades its
trading system on Monday.
The Government's recent sales of large blue-chip stakes to foreign
investors failed to ease pressure on the LKR, with the LKR hitting a new
low against the USD on the back of seasonal importer demand. The Central
Bank however hastened to reassure markets, stating that it expects
further FX inflows to the country in addition to the recent inflows via
equities, capital raising by private commercial banks and investment in
SLDBs and Treasuries.
The CB added that these increasing FX inflows, along with a
deceleration of import demand should stabilize the LKR in the coming