Market down

The downward momentum that was witnessed the previous week continued as the market closed on a week-on-week decline. The ASPI declined 2.41% down 141.45 points to close at 5738.24 points. The MPI decreased by 206.39 points (or 3.78%) while the S&P SL 20 Index declined 2.26% (71.72 points) to close the week at 5260.11 and 3098.42 points, respectively.

JKH added up to be the highest contributor in terms of revenue in the market accounting for 19.45% or LKR 489.26mn. Commercial Bank and Aitken Spence together accounted for 11.89% of the week’s turnover value with a combined value amounting to LKR 298.95mn. Total turnover for the week amounted to LKR 2.52bn declining 57.84% in comparison to last week’s turnover value of LKR 5.97bn, while the daily average turnover value for the week amounted to LKR 503.05mn. Market capitalization too decreased by 2.41% over the week (or LKR 54.16bn) to LKR 2197.78bn, relative to last week’s market capitalization of LKR 2251.94bn.

The Diversified sector, aided mostly by JKH (with a value of LKR 489.26mn), was the highest contributor to the week’s turnover value, contributing LKR 738.32mn or 29.35% to the market. The Banking and Finance sector contributed LKR 649.41mn or 25.82% over the week while the Beverage Food and Tobacco sector accounted for 10.49% or LKR 263.94mn. Turnover volume for the week was dominated by the Banking and Finance sector with 37.28mn shares changing hands accounting for 28.62% of total market volume. The Manufacturing sector accounted for 12.20% with 15.90mn shares being traded while the Diversified sector witnessed 14.90mn shares changing hands accounting for 11.44% of the market’s total turnover volume.

Bimputh Finance was the highest gainer for the week with an appreciation of 12.50% to close the week at LKR 38.70 compared to last week’s close of LKR 34.40. Ceylon Beverage gained 11.11% to close the week at LKR 400.00 while Singalanka closed at LKR 126.80 up 9.31% over the week.

The highest price loser for the week was SMB Leasing declining 16.67% from last week’s close of LKR 1.20 to close the week at LKR 1.00. Nuwara Eliya Hotels declined 16.00% closing the week at LKR 1260.00 while Good Hope lost 14.53% to close at LKR 1188.10. Also amongst the losers were Gestetner and Harischandra Mills which declined 13.17% and 11.99%, respectively.

Net foreign inflows for the week amounted to LKR 0.17bn relative to LKR 0.77bn recorded last week, representing a 77.31% W-o-W decline. Daily average net inflows amounted to LKR 34.93mn relative to LKR 153.90mn recorded last week. Total foreign purchases declined 55.89% to LKR 0.82bn from LKR 1.86bn last week, while total foreign sales amounted to LKR 0.64bn relative to LKR 1.09bn last week, representing a 40.72% W-o-W decline. In terms of volume, Access Engineering and Dialog Axiata led foreign purchases, while Renuka Agri and Asiri Surgical led the foreign sales. In terms of value, Access Engineering and Point of View Distilleries led foreign purchases, while JKH and National Development Bank foreign sales.

Low investor participation saw indices slip further this week with the ASPI hitting a one-month low of 5720.86 points on Thursday, before closing the week in the red. Turnover too dwindled down over the week to close at a cumulative LKR 2.52bn, averaging just LKR 0.5mn, well below the year-to-date daily average of LKR 1.0bn. The credit relaxing measures announced by the SEC did little to stimulate markets and sentiment remained subdued amid selling pressure. Similar sentiment is likely to prevail in the week ahead. Net foreign inflows however remained uninterrupted, albeit significantly lower W-o-W, as accumulation of blue-chips continued.