Positive momentum continued in domestic equities this week as the benchmark index hit a 2 ½ year high at its close on Friday amid news that Sri Lanka is considering re-opening the airport for tourists from Jan next year while the UK authorized the rollout of the Pfizer/BioNTech vaccine from next week. Banking sector stocks (COMB, SAMP, & HNB) collectively contributed to 11.4% of this week’s ~217 points ASPI gain despite a report from Moody’s Investor Services warning that Sri Lankan banks could post larger declines without public or private injections1.
Consequently, the Bourse ended the week on a positive note as the ASPI increased by 216.70 points (or +3.51%) to close at 6,397.56 points, while the S&P SL20 Index increased by 101.11 points (or +4.15%) to close at 2,534.74 points. Gains on the benchmark index this week helped push the ASPI YTD gain to 4.7% (cf. 1.2% last week).
Turnover & Market Capitalization
Total turnover value increased 46.6% W-o-W to LKR 13.9Bn (cf. last week’s value of LKR 9.5Bn), while daily average turnover value amounted to LKR 2.8Bn (compared to last week’s average of LKR 1.9Bn). On’ally Holdings topped the turnover list this week as large parcels collectively representing a 50.8% stake in ONAL was purchased by Lanka Realty Investments PLC. Buying interest also continued EXPO this week. Although retail investors continued to drive activity levels, local HNI and institutional investor participation improved this week as crossings for the week accounted for 15% of total market turnover (cf. a mere 4% last week) supported by crossings in ONAL (66.4% of total crossings).
Dividend Announcements
Company DPS(Rs.) Dividend Type Date (XD); CARGILLS (CEYLON) PLC 1.90 First Interim 15/12/2020 Company Proportion Type No of Shares PEOPLE’S LEASING & FINANCE 1:21.17 Scrip 76,899,372.
Key Economic Indicators November Prime Lending Rate 5.95%, Ave. Wtd. Deposit Rates 6.01%, Ave. Wtd. Fixed Dep. Rates 7.37%, CCPI Inflation Y-o-Y % (Base 2013) 4.1%.
Net Foreign Position
Foreign investors were net sellers this week with total net outflow amounting to LKR 0.55Bn relative to last week’s total net outflow of LKR 0.09Bn (-507.1% W-o-W). Total foreign purchases decreased by 11.5% W-o-W to LKR 0.50Bn from last week’s value of LKR 0.57Bn, while total foreign sales amounted to LKR 1.05Bn relative to LKR 0.66Bn recorded last week (+59.5% W-o-W).
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