Bourse ends week on mixed note | Daily News


Bourse ends week on mixed note

The Bourse ended the week on a mixed note as the ASPI decreased by 8.61 points (or -0.15 percent) to close at 5,889.86 points, while the S&P SL20 Index increased by 5.64 points (or 0.19 percent) to close at 2,908.44 points.

JKH was the highest contributor to the week’s turnover value, contributing LKR 0.48Bn or 14.66 percent of total turnover value. Ceylinco Insurance followed suit, accounting for 11.38 percent of turnover (value of LKR 0.37Bn) while Union Bank contributed LKR 0.23Bn to account for 6.92 percent of the week’s turnover. Total turnover value amounted to LKR 3.26Bn (cf. last week’s value of LKR 2.55Bn), while daily average turnover value amounted to LKR 0.65Bn (-23.20 percent W-o-W) compared to last week’s average of LKR 0.85Bn. Market capitalization meanwhile, decreased by 0.15 percent W-o-W (or LKR 4.17Bn) to LKR 2,780.49Bn cf. LKR 2,784.67Bn last week.

Liquidity (in value terms)

The Banks, Finance & Insurance sector was the highest contributor to the week’s total turnover value, accounting for 38.78 percent (or LKR 1.26Bn) of market turnover. Sector turnover was driven primarily by Ceylinco Insurance, Union Bank, Sampath Bank, and Commercial Bank which accounted for 72.08 percent of the sector’s total turnover. The Diversified sector meanwhile accounted for 33.65 percent (or LKR 1.10Bn) of the total turnover value, with turnover driven primarily by JKH, Browns Investments, Melstacorp & Hemas Holdings which accounted for 93.98 percent of the sector turnover. The Telecom sector was also amongst the top sectorial contributors, contributing 5.72 percent (or LKR 0.19Bn) to the total turnover, with turnover driven primarily by Dialog accounting for 96.50 percent of the total turnover.

Liquidity (in volume terms)

The Diversified sector dominated the market in terms of share volume, accounting for 44.29 percent (or 74.04Mn shares) of total volume, with a value contribution of LKR 1.10Bn. The Banks, Finance & Insurance sector followed suit, adding 17.55 percent to total turnover volume as 29.33Mn shares were exchanged. The sector’s volume accounted for LKR 1.26Bn of total market turnover value. The Telecom sector meanwhile, contributed 16.86Mn shares (or 10.08 percent), amounting to LKR 0.18Bn.

Top gainers & losers

Blue Diamond[NV] was the week’s highest price gainer; increasing 33.3 percent W-o-W from LKR0.30 to LKR0.40 while Tess Agro[NV] (+25.0 percent W-o-W), Browns Investment (+17.6 percent W-o-W) and Janashakthi Insurance (+14.8 percent W-o-W) were also amongst the top gainers. Renuka Hotels was the week’s highest price loser; declining 25.8 percent W-o-W to close at LKR34.00 while Paragon (-23.9 percent W-o-W), Tess Agro (-20.0 percent W-o-W) and Office Equipment (-18.5 percent 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 0.19Bn relative to last week’s total net inflow of LKR 0.03Bn (-745.6 percent W-o-W). Total foreign purchases increased by 50.5 percent W-o-W to LKR 0.68Bn from last week’s value of LKR 0.45Bn, while total foreign sales amounted to LKR 0.87Bn relative to LKR 0.42Bn recorded last week (+105.7 percent W-o-W). In terms of volume, Keells Hotels & JKH led foreign purchases while Lanka IOC & Dialog Axiata led foreign sales. In terms of value, JKH and Keells Hotels led foreign purchases while Lanka IOC & Hemas Holdings led foreign sales.

Point of view

Equity markets reversed last week’s marginal W-o-W gain (of 4.0 index points) as the broad share index slipped ~9 points over the week to end at 5,889.86 points. Market sentiments continued to vary this week as the benchmark index opened on a negative note, losing ~17 points on Monday. However, the Index regained some momentum between Tuesday and Wednesday led by an interest in buying heavyweight JKH. Meanwhile, profit-taking during the remainder of the week affected the performance of equity markets and the losses stemming from selling pressure resulted in the ASPI paring down the week’s earlier gains.

Activity levels on the Colombo Bourse continued to improve this week, supported by Local HNI and Institutional investor buying interest, as crossings for the week accounted for 33 percent of total weekly turnover. Crossings in Ceylinco Insurance, Melstacorp and Dialog accounted for 65 percent of total crossing while large parcels in Commercial Bank, Sampath Bank, Union Bank, JKH, Keells Hotels, and Teejay Lanka accounted for the remainder.

Consequently, the average daily turnover for the week increased from Rs. 0.51Bn last week to Rs. 0.65 Bn this week. Foreign investors were net sellers this week as investors sold off shares in Lanka IOC, Hemas Holdings and Commercial Bank during the week.

Some foreign buying interest in JKH and its subsidiary, Keells Hotels, helped pare down the sell-off on domestic equities during the week. Consequently, foreign investors recorded a net foreign outflow of Rs. 189.3Mn this week cf. a net foreign inflow of Rs. 29.3Mn last week.

The YTD net selling position on the CSE subsequently fell to Rs. 1.4Bn (cf. the YTD net selling position of Rs. 1.2Bn last week). Markets in the week ahead are likely to take cues from economic developments and any developments with regard to the current ruling party’s presidential candidacy.

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