The Bourse ended in the red this week as the ASPI decreased by 25.84 points (or 0.42%) to close at 6,094.15 points, while the S&P SL20 Index decreased by 17.63 points (or 0.50%) to close at 3,488.50 points.
Turnover & market capitalization
JKH was the highest contributor to the week’s turnover value, contributing LKR 0.68Bn or 32.08% of total turnover value.
Teejay Lanka followed suit, accounting for 9.73% of turnover (value of LKR 0.21Bn) while Hemas Holdings contributed LKR 0.16Bn to account for 7.76% of the week’s turnover.
Total turnover value amounted to LKR 2.12Bn (cf. last week’s value of LKR 3.46Bn), while daily average turnover value amounted to LKR 0.53Bn (-23.46% W-o-W) compared to last week’s average of LKR 0.69Bn.
Market capitalization meanwhile, decreased by 0.42% W-o-W (or LKR 11.38Bn) to LKR 2,686.69Bn cf. LKR 2,698.07Bn last week.
Liquidity (in value terms)
The Diversified Sector was the highest contributor to the week’s total turnover value, accounting for 45.13% (or LKR 0.96Bn) of market turnover.
Sector turnover was driven primarily by JKH, Hemas Holdings & Expolanka which accounted for 94.25% of the sector’s total turnover.
The Manufacturing Sector meanwhile accounted for 23.19% (or LKR 0.49Bn) of the total turnover value with turnover driven primarily by Teejay Lanka, Swisstek & Royal Ceramic which accounted for 80.63% sector turnover.
Banking, Finance & Insurance Sector was also amongst the top sectorial contributors, contributing 18.66% (or LKR 0.40Bn).
The sector turnover was driven by HNB, Sampath Bank & Seylan Bank which accounted to 65.78% of the sector turnover.
Liquidity (in volume terms)
The Diversified Sector dominated the market in terms of share volume, accounting for 36.15% (or 19.59Mn shares) of total volume, with a value contribution of LKR 0.96Bn.
Manufacturing sector followed suit, adding 23.79% to total turnover volume as 12.90Mn shares were exchanged.
The sector’s volume accounted for LKR 0.49Bn of total market turnover value. The Banking, Finance & Insurance Sector meanwhile, contributed 7.26Mn shares (or 13.39%), amounting to LKR 0.40Bn.
Top gainers & losers
Blue Diamond[X] was the week’s highest price gainer; increasing 25.00% W-o-W from LKR 0.40 to LKR 0.50. SMB Leasing gained 20.00% W-o-W to close at LKR 0.60 while Kelani Cables gained 13.86% W-o-W to close at LKR 115.00. Tea Smallholder (+12.89% W-o-W) and Agstar PLC (+12.00% W-o-W) were also amongst the gainers.
Serendib Hotels[X] was the week’s highest price loser, declining 13.81% W-o-W to close at LKR 18.10. Singhe Hospitals (-10.00% W-o-W), Lotus Hydro (-12.31% W-o-W) and Bukit Darah (-9.96% W-o-W) also declined.
Foreign investors closed the week in a net buying position with total net inflows amounting to LKR 0.83Bn relative to last week’s total net inflow of LKR 0.11Bn (+660.70% W-o-W).
Total foreign purchases decreased by 42.90% W-o-W to LKR 1.40Bn from last week’s value of LKR 2.45Bn, while total foreign sales amounted to LKR 0.57Bn relative to LKR 2.34Bn recorded last week ( -75.57% W-o-W).
In terms of volume, Expolanka Holdings and JKH led foreign purchases while Seylan Bank & Teejay Lanka led foreign sales.
In terms of value, JKH & Hemas Holdings led foreign purchases while Seylan Bank & HNB led foreign sales.
Point of view
Equities ended in the red for the 4th consecutive week as the Benchmark ASPI slipped a further 26 points to end at 6094.15.
The ASPI which hit a 10 Month low of 6068.3 on Monday (~52 points down from last week’s close) wiped off some of its losses (~ 25 points) on Tuesday amid the CBSL’s decision to hold policy rates steady for the 6th consecutive month.
Despite the slight uptick in the Index, daily average turnover levels over the holiday-shortened week remained thin, declining 24% W-o-W to end at LKR 0.53Bn, ~15% lower than the 2017 daily average turnover of LKR 0.62Bn.
Crossings over the week accounted for ~23% of total market turnover, amid strong interest in Swisstek (24% of crossings), JKH (17% of crossings) and Teejay Lanka (15% of crossings).
Foreign investors meanwhile, continued to remain net buyers for the 2nd consecutive week in February, with net inflows to the Bourse improving a significant 660% W-o-W helping ease the net outflows from equity markets this year to LKR 707.04Mn (cf. LKR 1.66Bn recorded in Jan’17).
A recovery in sentiment is likely in the week ahead amid Fitch Rating’s revised outlook on Sri Lanka and continued corporate earning inflows.
Fitch revises up Sri Lanka’s outlook to stable
Fitch Ratings on Friday revised up its outlook on Sri Lanka’s sovereign rating to stable (from negative) while re-affirming its credit rating at ‘B+’. The Agency attributed i) improving fiscal finances, ii) the 3-year extended fund facility with the IMF which has improved policy coherence/credibility and eased some near-term pressure on the B-o-P and, iii) stable growth trends as key ratings drivers for its revised outlook1.
The ratings outlook is a contrast to Feb’2016 when Fitch first downgraded Sri Lanka to B+ (from BB-) with a negative outlook citing increased refinancing risk, significant debt maturities, weaker public finances and declines in FX reserves.
The CBSL meanwhile, held policy rates steady at its first monetary policy meeting of the year, citing its view that the economy was gradually responding to the monetary and fiscal stabilization measures adopted since late 2015.
The Monetary Authority adopted a relatively cautionary tone however, adding that close monitoring of economic developments is necessary in the period ahead as inflation levels have trended up and private credit growth levels have remained high despite the increases in nominal and real interest rates.
Add new comment