Wednesday, August 4, 2021

Staggering market turnover - Softlogic Stockbrokers

Despite the initial uptick in the main ASPI index escorted by price gains in value counters, the market took a slight dive during the latter hours of trading and settled in the red territory amidst profit takings. Thus, the All Share Price Index declined by12.2 points (-0.2%) to close at 8,210.3 whilst the S&P SL20 Index also declined by 1.2 points (-0.4%)to close the day at 3,109.9. A notice by the government revealed that Sri Lanka’s West Container Terminal (WCT) at Colombo Port built as a tri-party project by SLPA, India’s Adani group and John Keells Holdings is expected to cost ~USD650 mn and will get a 25-year tax holiday. The project will hold a debt-equity funding mix of 70:30 whilst the debt will be via a foreign loan. Adani group said in March that it will hold a 51% stake in the WCT, Sri Lanka Ports Authority a 15% whilst JKH is to hold the balance ~34% stake.

Additionally, HCL Technologies, an India-based tech company has agreed to take up 80% or ~20 floors of the office tower “Offices” of Cinnamon Life, done by John Keells Holdings. Hence JKH is of the view that HCL’s commitment as the anchor office tenant at Cinnamon Life is to add immense value to the integrated mixed development project as a whole, as the office spaces are poised to attract a dynamic local and expatriate workforce. Expolanka Holdings, LOLC Holdings, Ceylon Cold Stores and Dipped Products remained as the top negative contributors to the ASPI during the day. Further, the broader market’s total turnover stood at LKR 5,682.2 mn against the 12-month average daily turnover of LKR 3,290.3 mn, whilst the volume traded for the day was 245,004.7k against the 12-month average daily volume of 185,265.3k. Transportation, Capital Goods and Food & Beverage were the main sectors that contributed to the daily turnover.

Expolanka Holdings led the pack yesterday recording a daily turnover of LKR 1,436.0 mn (-2.3%), followed by Browns InvestmentsLKR 840.4 mn (+1.5%), John Keells Holdings LKR 583.3 mn (+1.4%), Royal Ceramics LKR 307.6 mn (-0.7%), and Dipped Products LKR 215.4 mn (-1.5%) and Vallibel One LKR 350.6 mn (+9.8%). Foreigners were net sellers yesterday recording an outflow of LKR 266.7 mn during the day.

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