JKH makes highest contribution to turnover with Rs 5.20 bn | Daily News

JKH makes highest contribution to turnover with Rs 5.20 bn

Foreign Outflows from Capital Markets Continue

The Bourse ended the week on a negative note as the ASPI decreased by 113.58 points (or -1.86%) to close at 5,978.63 points, while the S&P SL20 Index also decreased by 114.22 points (or -3.56%) to close at 3,094.21 points.

Turnover and market capitalization

JKH was the highest contributor to the week’s turnover value, contributing LKR 5.20Bn or 66.60% of total turnover value. NDB followed suit, accounting for 10.36% of turnover (value of LKR 0.81Bn) while Sampath Bank contributed LKR 0.51Bn to account for 6.55% of the week’s turnover.

Total turnover value amounted to LKR 7.80Bn (cf. last week’s value of LKR 9.92Bn), while daily average turnover value amounted to LKR 1.95Bn (-1.66% W-o-W) compared to last week’s average of LKR 1.98Bn.

Market capitalization meanwhile, decreased by 1.86% W-o-W (or LKR 53.29Bn) to LKR 2,804.85Bn cf. LKR 2,858.14Bn last week.

Liquidity (in value terms)

The Diversified sector was the highest contributor to the week’s total turnover value, accounting for 67.83% (or LKR 5.29Bn) of market turnover. Sector turnover was driven primarily by JKH & Melstacorp which accounted for 99.34% of the sector’s total turnover.

The Banks, Finance & Insurance sector meanwhile accounted for 21.38% (or LKR 1.67Bn) of the total turnover value, with turnover driven primarily by NDB, Sampath Bank, HNB,LB Finance & Vallibel Finance which accounted for 89.27% of the sector turnover.

The Manufacturing sector was also amongst the top sectorial contributors, contributing 6.68% (or LKR 0.52Bn) to the market driven by Chevron & Teejay Lanka which accounted for 84.63% of the sector turnover.

Liquidity (in volume terms)

The Diversified sector dominated the market in terms of share volume, accounting for 42.36% (or 40.56Mn shares) of total volume, with a value contribution of LKR 5.29Bn. The Banks, Finance & Insurance sector followed suit, adding 21.77% to total turnover volume as 20.84Mn shares were exchanged.

The sector’s volume accounted for LKR 1.67Bn of total market turnover value. The Manufacturing sector meanwhile, contributed 12.24Mn shares (or 12.79%), amounting to LKR 0.52Bn.

Top gainers and losers

Adam Investments was the week’s highest price gainer; increasing 100.0% W-o-W from LKR0.10 to LKR0.20 while SMB Leasing (+25.0% W-o-W), Softlogic Life (+11.2% W-o-W) and Udapussellawa (+11.1% W-o-W) were also amongst the top gainers.

Eden Hotel was the week’s highest price loser; declining 16.6% W-o-W to close at LKR12.10 while Softlogic Finance (-16.4% W-o-W), Lanka Aluminium (-13.2% W-o-W) and Lighthouse Hotel (-12.7% W-o-W) were also amongst the top losers over the week.

Foreign investors closed the week in a net selling position with total net outflow amounting to LKR 3.92Bn relative to last week’s total net outflow of LKR 3.86Bn (-1.47% W-o-W). Total foreign purchases decreased by 45.40% W-o-W to LKR 1.45Bn from last week’s value of LKR 2.66Bn, while total foreign sales amounted to LKR 5.37Bn relative to LKR 6.52Bn recorded last week (-17.63% W-o-W).

In terms of volume, Anilana Hotels & NDB led foreign purchases while JKH & Access Engineering led foreign sales. In terms of value, NDB & Anilana Hotels led foreign purchases while JKH & Access Engineering led foreign sales.

Point of view

Domestic political uncertainty continued to dominate market movement this week with the broadshare Index falling ~2% from its 2-month high last week. Equity markets in most Emerging and Frontier market peers by contrast, hit one-month highs as investors perceived the outcome from the US mid-term elections (ie: a divided Congress) positively.

Sri Lanka’s benchmark Index however, recorded consecutive losses between Mon-Thur, falling ~162 points as last week’s heavy local retail and institutional buying eased-off amid some profit-taking from last week’s market rally and as the country’s political stalemate worsened over the week. On Friday however, the ASPI rebounded, gaining ~48 points to pare down the week’s earlier losses. Activity levels too remained robust despite the holiday-shortened trading week, and average weekly turnover remained in line with that of last week’s average of Rs.2.0Bn.

Foreign investors on the Colombo Bourse meanwhile continued to remain net sellers over the week, maintaing their pace of selling amid the ongoing political fallout. Foreigners sales amounted to Rs5.4Bn during the week cf. Rs.6.5Bn last week, and the majority of selling was in Sri Lanka’s main blue-chip JKH which was collected by key local HNIs. Foreign selling on JKH totaled Rs.4.4Bn, but foreign buying in NDB (Rs.0.4Bn) and Anilana Hotels (Rs.0.2Bn) helped pare down the net selling on the market to Rs. 3.9Bn.

Net outflows from domestic equities in Q4’18 so far has risen to Rs.11.4Bn cf. just Rs.6.2Bn recorded between Jan-Sep’18. Political developments surrounding the reconvening of parliament next week is likely to influence market movement in the week ahead.

The foreign sell-off on Sri Lankan capital markets continued this week, with net outflows of Rs. 10Bn from Govt. Bond markets and net outflows of Rs.3.9Bn from Sri Lankan equities pushing the LKR 0.5% lower against the USD this week.

The LKR has lost 1.3% of its value since the start of the political crisis on Oct’26, adding to the 11% loss on the LKR up till then and taking the cumulative YTD loss on the LKR to 12% to make the LKR one of the worst performing EM/FM currencies so far this year.

 


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