The benchmark index remained largely unchanged this week, amid better-than-expected earnings releases from select stocks and the easing of lockdown measures. Although Sri Lankan equities began the week on a positive note amid strong buying interest in EXPO, profit-taking over the remainder of the week kept the index below 6,100 points. EXPO, DIPD and HAYL experienced some selling pressure on Tuesday following the announcement of a vaccine with an efficacy rate above 90% (according to its Phase 3 trials) developed by Pfizer and BioNTech.
Consequently, the Bourse ended the week marginally up as the ASPI increased by 2.33 points (or +0.04%) to close at 6,082.42 points, while the S&P SL20 Index also increased by 31.07 points (or +1.31%) to close at 2,401.37 points. Gains on the benchmark index this week helped trim ASPI YTD loss to -0.4%.
Turnover & Market Capitalization
The total turnover value fell 6% W-o-W to LKR 15.7Bn (cf. last week’s value of LKR 16.8Bn), while daily average turnover value amounted to LKR 3.1Bn (compared to last week’s average of LKR 3.4Bn) as turnover levels continued to decline during the week, falling from LKR 5.5Bn on Monday to LKR 1.9Bn by Friday. EXPO continued to dominate weekly turnover levels and contribution of ~24% to total market turnover amid a significant increase in earnings for Sept’20 quarter. Buying interest also continued in DIPD and HAYL amid heavy foreign selling pressure. Retail investors continued to drive activity levels as local HNI and institutional investors remained largely on the side-lines with crossings for the week accounted for a mere 3% of total market turnover (cf. 6% last week). Investor interest mainly focused on UML (30.4% of crossings), DIPD (18.0% of crossings), and VONE (16.2% of crossings).
Dividend Announcements
Company DPS(Rs.) Dividend Type Date (XD); CEYLON GRAIN ELEVATORS 4.50 Interim 24-11-2020, THREE ACRE FARMS 5.50 Interim 24-11-2020, HEMAS HOLDINGS 0.40 First Interim 23-11-2020, WATAWALA PLANTATIONS 3.00 First Interim 23-11-2020, UNION CHEMICALS 15.00 First Interim 23-11-2020, LANKA WALLTILES 3.60 First Interim 19-11-2020, LANKA TILES 3.85 First Interim 19-11-2020, CEYLON TOBACCO 19.00 Third Interim 19-11-2020, COLOMBO CITY HOLDINGS 50.00 First Interim 19-11-2020, VALLIBEL POWER ERATHNA 0.30 Second Interim 17-11-2020.
Key Economic Indicators September; Prime Lending Rate-6.42% Ave. Wtd. Deposit Rates-6.44% Ave. Wtd. Fixed Dep. Rates-7.9% CCPI Inflation Y-o-Y % (Base 2013)-4%.
Net Foreign Position
Foreign investors were net sellers this week with total net outflow amounting to LKR 1.07Bn relative to last week’s total net outflow of LKR 1.32Bn (+18.3% W-o-W). Total foreign purchases decreased by 48.6% W-o-W to LKR 0.16Bn from last week’s value of LKR 0.31Bn, while total foreign sales amounted to LKR 1.24Bn relative to LKR 1.63Bn recorded last week (-24.1% W-o- W).
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