Aitken Spence highest contributor to week’s turnover value

The market continued its downward trend witnessed over the past week with the ASPI declining 1.45% W-o-W while the S & P SL 20 Index declined 0.51% W-o-W. The ASPI closed at 5652.69 points, down 82.92 points, while The S&P SL 20 Index lost 16.43 points to close the week at 3206.85 points.

Conglomerate Aitken Spence was the highest contributor to the week’s turnover value accounting for 22.48% of total market turnover with a value of LKR 773.54mn. HNB contributed LKR 577.97mn (or 16.79%) while Commercial Bank contributed LKR 332.72mn (or 9.67%) to total market value. Turnover value for the shortened-week amounted to LKR 3.44bn, down from LKR 3.94bn the previous week.

The daily average turnover value however increased 9.25% W-o-W from LKR 787.54mn last week to LKR 860.38mn.

Market Capitalization too recorded a decline of LKR 31.83bn (or 1.44%) over the week to close at LKR 2171.70bn relative to last week’s closing value of LKR 2203.54bn.

The Banking &Finance sector, helped mostly by HNB & Commercial Bank (aggregate value of LKR 910.69mn), was the highest contributor to the week’s turnover value, contributing LKR 1.55 bn or 45.01% to the market. The Diversified sector contributed LKR 1.17bn or 33.86% over the week aided by Aitken Spence contributing 66.38% - while the Manufacturing sector accounted for 7.04% (or LKR 242.34mn) of the week’s total turnover value.

Turnover volume for the week was dominated by the Banking and Finance sector with 29.44mn shares changing hands, accounting for 30.61% of total market volume. The Diversified sector accounted for 18.51% with 17.80mn shares being traded while the Manufacturing sector accounted for 12.53% of the market’s total turnover volume, as 12.05mn shares changed hands.

PCH Holdings Limited was the highest price gainer for the week rising 19.35% W-o-W to close at LKR 7.40, compared to last week’s close of LKR 6.20.

AIA Insurance Lanka Plc gained 16.81% W-o-W to close the week at LKR 344.60 while Union Chemicals Lanka Plc closed at LKR 509.50 up 13.22% over the week. The highest price loser for the week was Office Equipment Plc declining 29.82% from last week?s close of LKR 2850.00 to close the week at LKR 2000.00 (the counter recorded 1 share trade over the week).

Asiri Central Hospitals Plc declined 21.64% W-o-W closing the week at LKR 215.40 while Miramar Beach Hotel Plc lost 20.90% W-o-W to close at LKR 70.00. Also amongst the losers were Orient Garments Plc and Asia Siyaka Commodities Ltd, which declined 19.61% and 17.14%, respectively.

Foreign investors closed the week as net sellers recording net outflows of LKR 91.28mn relative to net inflows of LKR 511.53mn last week; averaging LKR 22.82mn relative to last week’s daily average net inflow of LKR 102.31mn (122.30% W-o-W decline). Daily average foreign purchases declined 11.27% W-o-W to LKR 430.01mn from LKR 484.61mn recorded last week, while daily average foreign sales amounted to LKR 452.83mn relative to LKR 382.30mn (18.45% W-o-W increase).

In terms of volume, Dialog and Piramal Glass led foreign purchases, while HNB and Tokyo Cement led foreign sales. In terms of value, Commercial Bank and JKH led foreign purchases, while HNB and Sampath Bank led foreign sales.

Point of view

Markets continued to lose impetus, with the ASPI declining 82.92 points over the week, and hitting a two-month low of 5635.90 points. Daily average turnover nevertheless rose marginally over the week as foreign activity on Thursday boosted turnover to LKR 1.43bn. Retail investors however, continued to remain subdued amid selling pressure. Similar sentiment is likely to prevail in the week ahead.

Foreign activity declined significantly W-o-W, recording daily average net outflows of LKR 22.82mn.

Year-to-date figures indicate a net foreign selling position of LKR 248.14mn on the bourse as predominant foreign sales in January failed to offset net inflows in February.

The LKR however depreciated against the USD this week with average rates hovering between LKR 127.42 to 127.44 (per USD). The weekly average rate was LKR 127.43, 0.27% depreciation over last week’s average of LKR 127.08.

Meanwhile point-to-point inflation in February remained unchanged with headline inflation registering 9.8% Y-o-Y. Average annual inflation however continued to rise, recording 8.6% relative to 8.1% in January.