The Bourse ended the week on a negative note as the ASPI decreased by 44.94 points (or -0.74%) to close at 6,044.73 points, while the S&P SL20 Index also decreased by 12.82 points (or -0.43%) to close at 2,945.89 points.
JKH was the highest contributor to the week’s turnover value, contributing LKR 0.67Bn or 33.72% of total turnover value. Tokyo Cement followed suit, accounting for 4.74% of turnover (value of LKR 0.09Bn) while Vidullanka contributed LKR 0.09Bn to account for 4.65% of the week’s turnover. Total turnover value amounted to LKR 1.99Bn (cf. last week’s value of LKR 1.83Bn), while daily average turnover value amounted to LKR 0.40Bn (-13.18% W-o-W) compared to last week’s average of LKR 0.46Bn. Market capitalization meanwhile, decreased by 0.74% W-o-W (or LKR 20.90Bn) to LKR 2,812.01Bn cf. LKR 2,832.91Bn last week.
Liquidity (in Value Terms)
The Diversified sector was the highest contributor to the week’s total turnover value, accounting for 38.99% (or LKR 0.77Bn) of market turnover. Sector turnover was driven primarily by JKH which accounted for 86.50% of the sector’s total turnover. The Banks, Finance & Insurance sector meanwhile accounted for 20.61% (or LKR 0.41Bn) of the total turnover value, with turnover driven primarily by Seylan Bank (Voting & Non-Voting), Sampath, Pan Asia and Commercial Bank which accounted for 75.05% of the sector turnover. The Manufacturing sector was also amongst the top sectorial contributors, contributing 15.10% (or LKR 0.30Bn) to the total turnover, with turnover driven primarily by Tokyo Cement accounting for 31.42% of the total turnover.
Liquidity (in Volume Terms)
The Power & Energy sector dominated the market in terms of share volume, accounting for 29.50% (or 23.24Mn shares) of total volume, with a value contribution of LKR 0.11Bn. The Bank, Finance & Insurance sector followed suit, adding 20.83% to total turnover volume as 16.41Mn shares were exchanged. The sector’s volume accounted for LKR 0.41Bn of total market turnover value. The Diversified sector meanwhile, contributed 15.03Mn shares (or 19.09%), amounting to LKR 0.77Bn.
Bimputh Finance was the week’s highest price gainer; increasing 54.7% W-o-W from LKR19.20 to LKR29.70 while Hatton Plantations (+11.3% W-o-W), Beruwala Resorts (+11.1% W-o-W) and Resus Energy (+10.4% W-o-W) were also amongst the top gainers.
Hunas Falls was the week’s highest price loser; declining 13.5% W-o-W to close at LKR163.30 while C M Holdings (-10.6% W-o-W), Mullers (-10.0% W-o-W) and Commercial Leasing & Finance (-8.3% 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 0.15Bn relative to last week’s total net outflow of LKR 0.45Bn (+66.9% W-o-W). Total foreign purchases increased by 34.3% W-o-W to LKR 0.57Bn from last week’s value of LKR 0.42Bn, while total foreign sales amounted to LKR 0.72Bn relative to LKR 0.87Bn recorded last week (-17.9% W-o-W). In terms of volume, Softlogic & JKH led foreign purchases while Vidullanka & Access Engineering led foreign sales. In terms of value, JKH & Softlogic led foreign purchases while Vidullanka & Tokyo Cement led foreign sales.
Point of View
Equity markets closed in the red for the 3rd consecutive week as subdued Q3’19 GDP figures and a ratings outlook downgrade by Fitch dampened investor sentiment. In sharp contrast to other developing markets which hit 7M highs at the start of the week amid a Phase I trade agreement between US-China and expectations of a smooth Brexit following the outcome of the UK elections, Sri Lanka’s broadshare ASPI lost 33 points on Monday and continued to lose momentum over the rest of the week amid negative economic news.
Week-on-week losses on the Index amounted to 45 index points (cf. to the 60-62 Index point losses recorded over the last two weeks) as Sri Lanka’s 9M’19 GDP growth fell to 2.6% Y-o-Y (cf. 3.8% Y-o-Y in 9M’18) and Fitch Ratings revised its outlook on Sri Lanka to B (Negative) from B (stable) previously.
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