Second wave tanks market - Acuity Stockbrokers | Daily News


 

Second wave tanks market - Acuity Stockbrokers

The Bourse ended the week on a negative note as the ASPI decreased by 251.45 points (or 4.16%) to close at 5,798.72 points, while the S&P SL20 Index decreased by 105.93 points (or 4.32%) to close at 2,348.50 points.

Turnover & Market Capitalization

JKH was the highest contributor to the week’s turnover value, contributing LKR 3.49Bn or 21.22% of the total turnover value. Expolanka followed suit, accounting for 16.86% of turnover (value of LKR 2.77Bn) while Tokyo Cement contributed LKR 0.82Bn to account for 4.97% of the week’s turnover. Total turnover value amounted to LKR 16.46Bn (cf. last week’s value of LKR 10.36Bn), while daily average turnover value amounted to LKR 3.29Bn (+27.14% W-o-W) compared to last week’s average of LKR 2.59Bn. Market capitalization meanwhile, decreased by 3.81% W-o-W (or LKR 100.08Mn) to LKR 2,524.09Bn cf. LKR 2,624.18Bn last week.

Liquidity (in Value Terms)

The Capital Goods Industry Group was the highest contributor to the week’s total turnover value, accounting for 37.27% (or LKR 6.13Bn) of market turnover. Industry Group’s turnover was driven primarily by JKH which accounted for 56.95% of the sector’s total turnover.

The Banks Industry Group meanwhile accounted for 15.47% (or LKR 2.55Bn) of the total turnover value, with turnover driven primarily by Sampath, Commercial, HNB & DFCC Bank which accounted for 62.88% of the sector turnover.

The Materials Industry Group was also amongst the top sectorial contributors, contributing 11.46% (or LKR 1.89Bn) to the total turnover, with turnover driven by Tokyo Cement[X] & Tokyo Cement.

Liquidity (in Volume Terms)

The Food Beverage & Tobacco Industry Group dominated the market in terms of share volume, accounting for 18.71% (or 168.93Mn shares) of total volume, with a value contribution of LKR 1.26Bn. The Transportation Industry Group followed suit, adding 14.55% to total turnover volume as 131.44Mn shares were exchanged. The Industry Group’s volume accounted for LKR 1.58Bn of total market turnover value. The Capital Goods Industry Group meanwhile, contributed 82.95Mn shares (or 9.18%), amounting to LKR 6.13Bn.

Top Gainers & Losers

Nawaloka was the week’s highest price gainer; increasing 51.2% W-o-W from LKR4.10 to LKR6.20 while Raigam Salterns (+47.1% W-o-W), Blue Diamonds[NV] (+33.3% W-o-W) and Singhe Hospitals (+30.4% W-o-W) were also amongst the top gainers.

SMB Leasing[NV] was the week’s highest price loser; declining 25.0% W-o-W to close at LKR0.30. Hunas Falls (-21.9% W-o-W), Renuka Holdings (-17.6% W-o-W) and Renuka Hotels[NV] (-17.3% 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 2.11Bn relative to last week’s total net outflow of LKR 1.99Bn (-6.14% W-o-W). Total foreign purchases increased by 101.95% W-o-W to LKR 0.46Bn from last week’s value of LKR 0.23Bn, while total foreign sales amounted to LKR 2.57Bn relative to LKR 2.22Bn recorded last week (+15.92% W-o-W). In terms of volume, Industrial Asphalts & Blue Diamonds led foreign purchases while JKH & Dialog led to foreign sales. In terms of value, CIC[X] & Sampath Bank led foreign purchases while JKH & Tokyo Cement[X] led foreign sales.

Dividend Announcements

Company DPS(Rs.) Dividend Type Date(XD); HARISCHANDRA MILLS 30.00 Final 16/11/2020 SWISSTEK PLC 2.65 First Interim 16/10/2020 LANKA VENTURES 1.50 Final 20/11/2020 ROYAL CERAMICS 3.00 First Interim 16/10/2020 LAXAPANA BATTERIES 1.00 First & Final 12/11/2020 LVL ENERGY FUND 0.17 Final 20/11/2020 CT HOLDINGS 2.80 Final 02/11/2020.

Key Economic Indicators August; Prime Lending Rate - 7.01%, Ave. Wtd. Deposit Rates - 6.44%, Ave. Wtd. Fixed Dep. Rates - 7.9%, CCPI Inflation Y-o-Y % (Base 2013) - 4.1%.

ASPI Sheds ~251 Points as New COVID-19 Cluster Emerges

The benchmark index snapped 4-consecutive weeks of gains as panic selling on Monday triggered by the detection of a new COVID-19 cluster in the community pushed the ASPI into negative territory despite bargain hunting returning to the market thereafter. Consequently, the Bourse ended the week on a negative note as the ASPI decreased by ~251 points (or -4.2% W-o-W), while the S&P SL20 Index decreased by ~106 points (or -4.3% W-o-W). The ASPI took a nose-dive on Monday, plummeting ~463 points for the day as the discovery of a new COVID-19 cluster after a space of 2 ½ months and a possible lockdown to contain the community spread stoked investor fears. Consequently, the ASPI recorded its largest single-day drop since Mar’20 when markets opened briefly after the GoSL imposed a lockdown to curb the spread of the first wave. The benchmark index shed a further ~53 points on Tuesday as the number of new cases continued to climb.

Meanwhile, in its latest report on South Asia, the World Bank stated that Sri Lanka’s economy is expected to contract by 6.7% in 2020 (cf. 3.2% estimated in Apr’20). Despite warnings from the World Bank regarding Sri Lanka’s challenging macroeconomic situation, bargain hunting over the remainder of the week helped trim down earlier losses. Consequently, gains on the benchmark index between Wednesday and Friday amounted to ~264 points. Although the foreign sell-off from equities remained relatively subdued during the beginning of the week, foreign selling heightened mid-week amid the downward revision by the World Bank and the State Minister of Capital Markets maintaining that the government has no intention of proceeding with an IMF bailout programme. Consequently, foreign investors were net sellers this week with a total net outflow of Rs. 2.1Bn relative to Rs. 2.0Bn last week. Activity levels in the Colombo Bourse, however, improved this week with daily average turnover amounting to Rs. 3.3Bn cf. Rs. 2.6Bn last week driven mainly by retail investor participation. Local HNI and institutional investor participation also improved as crossings for the week accounted for 18% of total market turnover (cf. 11% last week), dominated by buying interest in index-heavyweight JKH.