Monday, May 17, 2021

Bourse continues winning streak

The Colombo bourse continued the winning streak and started thenew weekon apositive notegaining +121 points, steered by healthy interim results releases amidst the impending Port City Economic Commission Billwhich is to be debated in the coming days.

Thus, ASPI increased by 121.9 points (+1.7%) to close at 7,350.1, while the S&P SL20 Index also surged by 71.6 points (+2.5%) to close at 2,941.1. Moreover, LOLC Holdings, Expo Lanka Holdings, John Keells Holdings, Distilleries and Vallibel Oneremained as thetop positive contributors to the ASPI during the day.Meanwhile, yesterday’s total turnover stood at LKR2,737.0 mn (USD13,671.3k) vs. 12-month average daily turnover of LKR3,017.6 mn (USD15,072.9k) whilst the volume traded for the day was 147,832.8k against the 12-month average daily volume of 167,977.7k.

Top traded counters for the day were Browns Investments LKR593.1 mn (USD2,962.4k, +1.5%), Expolanka Holdings LKR248.0 mn (USD1,238.9k,+5.6%), Royal CeramicsLKR221.5 mn (USD1,106.2k, +2.9%), LOLC Holdings LKR188.5 mn (USD941.5k, +4.5%) and Hayleys FabricLKR174.6 mn (USD872.1k, +1.6%).Foreigners continued to be net sellers offloading LKR29.6 mn (USD14.8k) during the day, where foreign purchases stood at LKR78.8 mn (USD39.4k)enticed by Hayleys (LKR25.2 mn), Hayleys Fabric (LKR6.7 mn) andWindforce (LKR4.7 mn). Total foreign sales amounted to LKR108.4 mn (USD54.1k), mainly seen in Ceylon Cold Stores (LKR37.6 mn), Lee Hedges (LKR12.5 mn) andCeylon Tobacco (LKR11.9 mn).

Meanwhile, Windforce and HNB Finance touched their 52-week high prices today whilst E B Creasy, Bimputh Finance and SMB Leasing reached their 52-week low price points. Further Browns Investments, Hayleys Fabric, Royal Ceramics and Expolanka Holdings were amongst the most actively traded counters today.

In addition, mid-cap counter PiramalGlass (GLAS)reported impressive quarterly results where profit for 4QFY21 increased +583% YoY to LKR401.7 mn whilst full year earnings too spiked +2.8x YoY to LKR1.1 bn in FY21 stemming from notable local and export sales growth, expanded GP margins and curtailed finance costs. Further to that, Ceylon Tobacco (CTC)1Q2021 earnings slipped only by a marginal -0.3% YoY to LKR3.9 bnmainly due to curtailed GP margins (down ~101 bps YoY to 92.4%) along with a ~59% YoY reduction in net finance income.

Moreover, CTC announced its first interim dividend of LKR19.0 for FY2021 yesterday. Converselylast week majority of the banks recorded a significant turnaround in earnings growth during 1Q2021, subsequent to deterioration in earnings over the previous couple of quarters.

(Compiled by Softlogic Research)

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