Market

Dialog, SriLankan offer star points, FlySmiLes conversion

SriLankan Airlines and Dialog Axiata announced an initiative based on their respective world class rewards and recognition schemes FlySmiLes and Star Points.

The partnership between Dialog and SriLankan Airlines will enable the conversion of Star Points earned on Sri Lanka’s largest loyalty rewards network, to air miles on the FlySmiLes frequent flyer rewards scheme of SriLankan Airlines.

Accordingly, customers of Dialog will now have the opportunity of converting their Star Points to air miles at a ratio 2 Star Points for 1 FlySmiLes Mile.

Dialog Axiata Group Chief Executive Dr. Hans Wijayasuriya said, “SriLankan Airlines and Dialog share a common ethos with respect to rewarding our customers through our exciting and innovative customer rewards programmes.

FlySmiLes and Star Points are both leaders in this respect and together touch several million Sri Lankan consumers.

We are extremely honoured to have the opportunity to extend the partnership between Dialog and FlySmiLes to a points conversion programme, enabling our customers to enjoy flight rewards and a host of other benefits from SriLankan Airlines and FlySmiLes partners”.

Adding on to Dr. Wijayasuriya’s comments, CEO Kapila Chandrasena of SriLankan Airlines, said, “It is indeed an honour to be associated in a ground breaking endeavour of this nature with one of Sri Lanka’s premier telecommunication service providers - Dialog.

The opportunity to enhance the customer experience and provide our mutual customers with a significant value addition is something that SriLankan Airlines is always striving for and this marriage of two industry leading loyalty programmes is an ideal opportunity to carry forward on that promise”.

Dialog customers with a minimum of 1000 Star Points in their account can make their conversion request via SMS by typing (fly) space (FlySmiLes number) space (points amount) and sending it to 141.

The relevant Miles will be awarded within two working days to the FlySmiLes account of the customer and he or she would receive a confirmation via SMS.

Market Review:

Market gathers momentum

The market gained marginally with both the ASPI and the MPI recording a week on week gain to close at 6950.61 and 6297.12, respectively. The ASPI increased by 1.42% and the MPI increased by 1.21%. Despite the four-day trading week, weekly turnover value recorded a significant increase to Rs 19.3 billion, compared to last week’s value of Rs 8.7 billion. This amounts to a daily average of Rs 4.8 billion, comparison to last week’s value of Rs 1.7 billion. Turnover was boosted by high net-worth investors trading in Amaya Leisure and Hayleys Group.

Turnover in value for the week was led by Hayleys Plc, Amaya Leisure and HVA Foods, accounting for 39.03% of the total turnover value. The number of shares traded increased significantly, averaging Rs 172.4 million traded daily, as against Rs 67.7 million traded last week.

Turnover in value for the week was led by the Hotels and Travels sector, accounting for 22.46%, amounting to Rs 4.3 billion. The second highest contributor was the Banking and Finance sector, accounting for 17.77%, amounting to Rs 3.4 billion. The Diversified sector was the third highest contributor, with 17.44% or Rs 3.4 billion.

Volume of turnover for the week was dominated by the Manufacturing sector, accounting for 24.47% of total market volume, with 168.7million shares changing hands, followed by the Banking and Finance sector, which represented 22.42% or 154.6 million shares. Third highest contributor was the Trading sector, with 104.3 million shares being traded, or 15.13% of turnover volume. Market capitalization recorded a gain of 1.4% to close at Rs 2492.2 billion, as against last week’s close of Rs 2457.2 billion.

The top price gainers list was dominated by speculative counters with HVA Foods topping the list to record a 80% gain to close at Rs 69.3. The second highest gainer was Blue Diamonds (NV), closing at Rs 3.7, from last week’s closing price of Rs 2.6, representing a 42.31% gain. Blue Diamonds (Voting) was the third highest price gainer, recording a gain of 38.27% over the week.

Radiant Gems and J.L. Morison lost 15.28% and 12.89% respectively over the week. Radiant Gems closed the week at Rs 80.4 while J.L. Morison closed at Rs 3,310. Convenience Food followed suit, declining 10.98% to close at Rs 325.0. Abans Financial Services Ltd. and Huejay were also major price losers, declining 8.63% and 8.19%, respectively.

Foreign buying amounted to Rs 556.5 million, representing a 34.36% increase over the week, whilst foreign selling increased by 42.16%, to Rs 594.2 million.

Tess Agro Plc topped the volume list recording 102.6 million shares changing hands representing 14.89% of the aggregate share volume. Blue Diamonds (NV) contributed 12.56% of aggregate share volume, with 86.6 million shares changing hands.

Point of view

Market activity rebounded strongly at the start of September, with a notable increase in retail activity even excluding activity from high-net worth investors. Retail interest however, continued to be concentrated in speculative counters.

Markets are likely to gather momentum over the weeks ahead, but will likely remain retail-driven in the short to medium term. With Q2 earnings factored in, we estimate a forward market PE in the 16x-17x range, making the bourse more attractive. We continue to see value in fundamentally strong counters.

Acuity Stockbrokers Research / Sri Lanka Equities