The Bourse ended the week on a negative note as the ASPI decreased by 468.42 points (or -8.77 percent) to close at 4,874.73 points, while the S&P SL20 Index also decreased by 273.64 points (or -11.04 percent) to close at 2,205.97 points.
JKH was the highest contributor to the week’s turnover value, contributing LKR 0.61Bn or 18.13 percent of total turnover value. Lion Brewery followed suit, accounting for 16.34 percent of turnover (value of LKR 0.55Bn) while Sampath Bank contributed LKR 0.38Bn to account for 11.26 percent of the week’s turnover.
Total turnover value amounted to LKR 3.34Bn (cf. last week’s value of LKR 2.57Bn), while the daily average turnover value amounted to LKR 0.83Bn (62.71 percent W-o-W) compared to last week’s average of LKR 0.51Bn. Market capitalization meanwhile, decreased by 8.63 percent W-o-W (or LKR 214.38Mn) to LKR 2,269.37Bn cf. LKR 2,483.75Bn last week.
Liquidity (in Value Terms)
The Capital Goods Industry Group was the highest contributor to the week’s total turnover value, accounting for 31.30 percent (or LKR 1.05Bn) of market turnover. Industry Group’s turnover was driven primarily by JKH, Access Engineering & Hemas Holdings which accounted for 84.27 percent of the sector’s total turnover.
The Banks Industry Group meanwhile accounted for 23.52 percent (or LKR 0.79Bn) of the total turnover value, with turnover driven primarily by Sampath Bank, Commercial Bank & HNB which accounted for 82.57 percent of the sector turnover. The Food, Beverage & Tobacco Industry Group was also amongst the top sectorial contributors, contributing 21.98 percent (or LKR 0.73Bn) to the total turnover, with turnover driven primarily by Lion Brewery & Browns Investments accounting for 84.20 percent of the total turnover.
Liquidity (in Volume Terms)
The Food, Beverage & Tobacco Industry Group dominated the market in terms of share volume, accounting for 24.12 percent (or 38.16Mn shares) of total volume, with a value contribution of LKR 0.73Bn. The Capital Goods Industry Group followed suit, adding 19.65 percent to total turnover volume as 31.09Mn shares were exchanged. The Industry Group’s volume accounted for
LKR 1.05Bn of total market turnover value. The Diversified Financials Industry Group meanwhile, contributed 18.56Mn shares (or 11.73 percent), amounting to LKR 0.11Bn.
Top Gainers & Losers
Blue Diamond[NV] was the week’s highest price gainer; increasing 50.0 percent W-o-W from LKR0.20 to LKR0.30 while Eden Hotel Lanka (+16.9 percent W-o-W), Lanka Realty (+14.7 percent W-o-W) and Serendib Hotels (+14.1 percent W-o-W) were also amongst the top gainers. Sinhaputhra Finance was the week’s highest price loser; declining 38.8 percent W-o-W to close at LKR3.00. Browns Investments (-37.1 percent W-o-W), Renuka Capital (-30.0 percent W-o-W) and Bansei Resorts (-28.6 percent W-o-W) were also among the top losers over the week.
Foreign investors closed the week in a net selling position with total net outflow amounting to LKR 0.39Bn relative to last week’s total net outflow of LKR 0.62Bn (+42.70 percent W-o-W). Total foreign purchases increased by 43.73 percent W-o-W to LKR 0.85Bn from last week’s value of LKR 0.59Bn, while total foreign sales amounted to LKR 1.23Bn relative to LKR 1.26Bn
recorded last week (-2.32 percent W-o-W). In terms of volume, Sierra Cable & East-West led foreign purchases while Dialog Axiata & Hemas holdings led foreign sales. In terms of value, East-West & Three Acre Farms led foreign purchases while Sampath Bank & JKH led foreign sales.
Point of View
Sri Lankan equities took a turn for the worse as domestic markets tracked a historic sell-off on global markets which were hit by double blows of i) rising concerns over a global recession caused by the escalating coronavirus outbreak and ii) an oil price war which further compounded investor fears. Domestic markets took a nose-dive on Tuesday as the ASPI recorded its second-largest one-day drop in reaction to the news that global oil prices had plunged 24 percent on Monday while the virus, now declared a pandemic by the WHO, continued to spread in Europe and the US.
The Index’s 221 point dip on Tuesday led to some buying interest on Wednesday, and the benchmark index consequently gained 83 points over the day. However, recovery on the broad share index was short-lived as the ASPI went into freefall over the rest of the week as Sri Lanka reported its first national to be tested positive for COVID-19 in the country, triggering further panic selling. Consequently, markets fell below the psychological mark of 5,000 points for the first time since Aug 2012 causing the ASPI to record its highest weekly loss ( 468 points or 8.8 percent W-o-W) as the index closed for the week at a 7 ½ -year low of 4,874.73 points.
Meanwhile, President Trump’s announcement of a 30-day ban on Europe also exacerbated negative global market sentiment as travel and tourism have been hard-hit by countries instituting travel bans.
Turnover levels on the Bourse, however, improved this week as average daily turnover increased to Rs. 0.83Bn (cf. Rs. 0.51Bn last week). However, local HNI and Institutional investors remained staunchly on the side-lines this week, with crossings for the week accounting for a mere 4 percent of the weekly turnover (cf. 36 percent last week). In tune with the sell-off in other EM/FM markets this week, foreign investors continued to exit domestic equities to record net
foreign outflow of Rs. 386Mn, bringing the total YTD outflow to Rs. 5.1Bn. Markets in the week ahead are likely to take cues from developments surrounding the spread of COVID-19 and political developments on the upcoming general elections.
Sources: (Foreign Media)
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