The Bourse ended the week on a positive note as the ASPI increased by 85.51 points (or +1.65%) to close at 5,261.99 points, while the S&P SL20 Index also increased by 92.91 points (or +4.17%) to close at 2,320.10 points.
Commercial Bank was the highest contributor to the week’s turnover value, contributing LKR 2.28Bn or 19.92% of the total turnover value. JKH followed suit, accounting for 19.08% of turnover (value of LKR 2.18Bn) while DFCC Bank contributed LKR 1.83Bn to account for 15.99% of the week’s turnover. Total turnover value amounted to LKR 11.43Bn (cf. last week’s value of LKR 4.29Bn), while the daily average turnover value amounted to LKR 2.29Bn (113.28% W-o-W) compared to last week’s average of LKR 1.07Bn. Market capitalization meanwhile, increased by 1.65% W-o-W (or LKR 40.25Mn) to LKR 2,476.49Bn cf. LKR 2,436.24Bn last week.
The Banks Industry Group was the highest contributor to the week’s total turnover value, accounting for 55.20% (or LKR 6.31Bn) of market turnover. Industry Group’s turnover was driven primarily by Commercial Bank, DFCC Bank, Sampath & HNB which accounted for 92.07% of the sector’s total turnover.
The Capital Goods Industry Group meanwhile accounted for 23.54% (or LKR 2.69Bn) of the total turnover value, with turnover driven primarily by JKH, Access Engineering & Hemas Holdings which accounted for 91.31% of the sector turnover. The Diversified Financials Industry Group was also amongst the top sectorial contributors, contributing 5.41% (or LKR 0.62Bn) to the total turnover, with turnover driven primarily by LOLC Holdings accounting for 73.56% of the total turnover.
The Banks Industry Group dominated the market in terms of share volume, accounting for 19.86% (or 86.30Mn shares) of total volume, with a value contribution of LKR 6.31Bn. The Food, Beverage & Tobacco Industry Group followed suit, adding 13.99% to total turnover volume as 60.78Mn shares were exchanged.
The Industry Group’s volume accounted for LKR 0.49Bn of total market turnover value. The Transportation Industry Group meanwhile, contributed 48.99Mn shares (or 11.28%), amounting to LKR 0.21Bn.
Bogawantalawa was the week’s highest price gainer; increasing 30.8% W-o-W from LKR0.10.40 to LKR13.60 while Hayleys (+20.8% W-o-W), Convenience Food (+18.2% W-o-W) and Dipped Products (+17.1% W-o-W) were also amongst the top gainers.
Industrial Asphalt was the week’s highest price loser; declining 33.3% W-o-W to close at LKR0.20. SMB Leasing (-20.0% W-o-W), Tess Agro (-20.0% W-o-W) and Tess Agro[NV] (-20.0% 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 2.87Bn relative to last week’s total net outflow of LKR 0.876Bn (-228.1% W-o-W). Total foreign purchases increased by 1250.2% W-o-W to LKR 0.72Bn from last week’s value of LKR 0.05Bn, while total foreign sales amounted to LKR 3.60Bn relative to LKR 0.93Bn recorded last week (+287.0% W-o-W).
In terms of volume, HNB, Sampath & People’s Insurance led foreign purchases while DFCC bank, Commercial Bank & JKH led foreign sales. In terms of value, HNB, Sampath & Nestle led foreign purchases while DFCC Bank, Commercial Bank & JKH led foreign sales.
Dividend Announcements Company DPS (Rs.) Type XD Date LANKA ASHOK LEYLAND 5.00 First & Final 28-09-2020 CEYLON TOBACCO COMPANY 15.00 Second Interim 25-08-2020 ASIA SIYAKA COMMODITIES 0.05 First & Final 24-08-2020 CONVENIENCE FOODS 5.50 Final 16-09-2020 CEYLON COLD STORES 8.50 First Interim 24-08-2020 ACCESS ENGINEERING 0.50 First Interim 21-08-2020 RENUKA CAPITAL 0.10 First & Final 29-09-2020 RENUKA AGRI FOODS 0.12 First & Final 29-09-2020 VALLIBEL POWER 0.40 First Interim 21-08-2020 CEYLON INVESTMENTS 0.25 Final 15-08-2020 CEYLON GUARDIAN INVESTMENT 1.15 First & Final 15-08-2020 TALAWAKELLE TEA ESTATES 2.75 First Interim 18-08-2020 Company Proportion Shares to be Issued Type CEYLON INVESTMENTS 1:52.67 1,888,311 Scrip.
Key Economic Indicators June; Prime Lending Rate- 8.78%, Ave. Wtd. Deposit Rates-7.38%, Ave. Wtd. Fixed Dep. Rates-9%, CCPI Inflation Y-o-Y % (Base 2013) 3.9%.
Sri Lankan equities continued to rally for a 4th consecutive week as renewed investor participation amid mixed earnings releases for the Jun’20 quarter drove market momentum this week. Markets opened the week on a negative note as some profit-taking in DIAL led the benchmark index to slip ~26 points during the day amidst relatively lower turnover level (Rs. 0.7Bn cf. YTD average daily turnover of Rs. 1.3Bn). However, average daily turnover levels improved significantly over the remainder of the week on the back of stronger local retail, HNI, and institutional buying momentum.
Consequently, the average daily turnover for the week hit a 7-month high to reach Rs. 2.3Bn for the week (up 113% W-o-W from Rs. 1.1Bn last week) as a strong interest in COMB, JKH, DFCC, and SAMP dominated market activity. Meanwhile, crossings for the week contributed 27% to total turnover, this week (cf. to a mere 9% last week), and accounting for Rs. 3.1Bn of this week’s turnover levels. Interest remained concentrated mainly on COMB and JKH which accounted for 73% of total crossings this week. Retail investors took cues from the strong local HNI and institutional interest, and the broad-based momentum in the market helped the benchmark ASPI gain ~ 86 points over the week to hit a high since early March. Gains on the index so far this month helped bring down the YTD loss on the ASPI to -13.9% (cf. - 16.1% end-Jul’20). Despite the renewed investor appetite by local retail, HNI, and institutional investors, the foreign sell-off on domestic equities heightened this week and net outflows from the Colombo Bourse totaled to Rs. 2.9Bn (cf. Rs. 0.9Bn last week) amid heavy selling pressure in select Banking sector stocks (DFCC & COMB) during the week. Markets are likely to take cues from ongoing earnings releases while investors wait for clarity on the economic policies of the new government in the weeks to come.
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