The Bourse Continues to Plunge…
Total Page:16
File Type:pdf, Size:1020Kb
The bourse continues to plunge… 6,000 5,950 The traded day concluded on an adverse sentiment and the 5,900 bourse witnessed yet another inactive trading session 5,850 5,800 directing the indices to drown further into the negative 5,750 5,700 terrain. The bourse was unable to sustain the early market- 5,650 5,600 rally where it touched the 5,700 mark, however as at the 5,550 5,500 closure the benchmark ASPI settled within the red territory . Open Mon Tue Wed Thu Fri at 5,672.64 losing 14.35 points or 0.25%; this was mainly due to the loses on counters such as LLUB (-1.09%), DIST (-1.13%) ASPI This Week ASPI Last Week and CTC (6.08%) etc. Following a similar pattern the S&P SL20 also closed within the negative territory at 3,177.17, 5,800.00 losing a minute 0.95 points or 0.03%. ASPI dropped 5,780.00 to its Six Month Low 5,672.64 5,760.00 The turnover for the day was recorded as LKR 239.30Mn, 5,740.00 indicating a drop of 50.73% against the previous trading 5,720.00 day. By accounting to more than half of the daily 5,700.00 TB rates closed aggregated turnover , John Keells Holdings PLC (JKH) 5,680.00 flat, one year TB rate at 10.56% . added LKR 125.64Mn dominating the list; the counter was 5,660.00 predominantly supported by an off-board block worth LKR 5,640.00 5,620.00 92.40Mn, resulted by 440K shares being blocked at price 5,600.00 LKR 210/-. Having traded between a highest traded price of 2-Sep-13 3-Sep-13 4-Sep-13 5-Sep-13 6-Sep-13 LKR 212/- and a low of LKR 209/-, JKH settled at 209.50/- , dropping by LKR 1.10/- or 0.52%. Chevron Lubricants Lanka PLC (LLUB) stood next in line adding LKR 8.15Mn, closed 3,400 the day at LKR 255/- down by LKR 2.80/- or 1.09%. People's 3,350 Leasing & Finance PLC (PLC) made a contribution of LKR 3,300 3,250 7.47Mn to the daily turnover, and closed the trading day at 3,200 LKR 13.50/- (down by LKR 0.20/- or 1.46%). Under the 3,150 sectorial round-up, Diversified Holdings (DIV) sector topped 3,100 the list providing LKR 133.98Mn, accounting to nearly 56% 3,050 of the day’s total turnover. Bank Finance & Insurance (BFI) Open Mon Tue Wed Thu Fri sector provided LKR 47.77Mn and stood next in line under S&P SL20 This Week S&P SL20 Last week the top subscriber list for the day. Additionally, the two sectors DIV and BFI collectively made account to nearly 76% of the aggregated turnover for the day. During the day, a total of 21.32Mn shares changed hands resulting in a decrease of 2.91% against the previous trading day. SMB Leasing PLC (SEMB), Central Investments & Finance PLC (CIFL) & Panasian Power PLC (PAP) secured their position under the top traded counters for the day with 7.40Mn and 4.90Mn and 647K shares respectively being traded. Further, controversial CIFL enjoyed with a speculative rally during the day charting 217 trades out of the total 3,504 trades being recorded for the day; the counter settled the day at its intraday peak of LKR 0.70/- gain ing a notable LKR 0.30/- or 75%, spearheading the price gainers for the day. Foreign participants appeared to be bearish during the day recording net foreign outflow of LKR 3.38Mn resulted by foreign selling of LKR 108.32Mn and buying of LKR 104.94Mn.The year to date net foreign inflow currently stands at LKR 18.50Bn. Week at a Glance… The continued selling pressure across the week slowed the market activities drastically, resulting in vast reductions on both indices. The ASPI dipped by a mega 161.40 points or 2.77% and the S&P SL20 index dropped by 84.16 points or 2.58% during the week. The total turnover for the week was LKR 1.73Bn, supported by 12 off market transactions totaling up to LKR 407.57Mn, making a 23.57% contribution to the weekly turnover. This was a drop of 28.83% compared to the previous week’s turnover. John Keells Holdings PLC (JKH), one of the largest conglomerates in the island continued to be the top contributor for the weekly turnover subscribing LKR 683.25Mn, supported by 8 off market transactions worth of 293.21Mn hence accounting to 16.96% of the week’s aggregate turnover value. JKH closed the week at LKR 209.50/- down by LKR 5.50/-. Commercial Bank of Ceylon PLC (COMB) [LKR 177.01Mn] supported by a negotiated deal worth LKR 32.76Mn crossed at LKR 114.70/- and Touchwood Investment PLC (TWOD) [LKR 64.54Mn] stood next to JKH. As at the weekly closure, COMB closed at LKR 114.50/- down by LKR 0.50- and TWOD closed at LKR 1.30/- down by LKR 1.00/-. Further, the aggregated turnover recorded by the top three subscribers made a noteworthy 53.48% contribution to the weekly turnover. Other crossing makers were HASU (LKR 26.13Mn), NEST (LKR 21Mn), and WATA (LKR 34.48Mn) respectively. The total traded volume for the week was 137.11Mn shares, a decrease of 16.40% against the previous week. Touchwood Investment PLC (38.50Mn shares), Central Investments & Finance PLC (11Mn shares) & SMB Leasing PLC (10.43Mn shares) were the top traded counters during the week. Notably, on the Thursday the Securities & Exchange Commission of Sri Lanka (SEC) directed the Colombo Stock Exchange (CSE) to suspend trading of the listed securities of Touchwood Investments PLC (TWOD) with immediate effect for three (3) days, in order to facilitate the SEC investigations. TWOD which opened the week at LKR 2.20/- fell to its all-time low (LKR 0.90/-) on Tuesday, however as at Thursday the counter settled at LKR 1.30/- losing LKR 0.90/- or 69.23%; this was amidst the announcement published by TWOD stating that the company has already filed an “Affidavit of Opposition” with regard to the petition filed by an stakeholder against TWOD. During the week Foreign buying of LKR 692.88Mn outpaced the foreign selling of LKR 729.75Mn resulting in net outflow of LKR 36.88Mn. As at the week’s closure, the total market capitalization stood at LKR 2.34Tn, recording a year to date gain of 7.79% and the market PER(X) and PBV(X) stood at 16.13 and 2.15 respectively. With regard to the local FOREX, the USD closed at LKR 134.75/- selling and LKR 131.36/- buying. Hemas plans to construct luxury resort in Tangalle During the week, Hemas Holdings PLC (HHL) announced that the company has already finalized plans to construct and operate a luxury five star Resort in Tangalle, scheduled to open in February 2015. The total value of the investment is approx. USD ($) 40Mn and HHL will approximately make a 50% contribution to this investment. As at the weekly closure HHL settled at LKR 31/-, gaining LKR 1/- (+3.33%) from its previous week’s close. US Senate committee supports the use of force against Syria A US Senate panel has approved the use of military action in Syria by a vote of 10-7, paving the path for a full senate vote, expected next week. The proposal allows the use of force in Syria for 60 days with the possibility to extend it for 30 days, further it prevents the use of US troops on the ground. During the past weeks the global oil prices (particularly WTI) witnessed volatilities amidst the fears of a possible military strike by the US against Syria. Even though the oil production in Syria (180K barrels per day) is of a tiny proportion as against the worldwide production of oil which amounts to 89Mn barrels per day, the fear remains that the neighboring countries of Syria will get pulled-in to the conflict, whilst resulting in disruptions for the production and transportation of the commodity in the region. As at the weekly closure WTI stood at $108.37 (+1.05%) and Brent stood at $115.26 (+0.30%). 800 90.00 300 60% 700 80.00 250 50% 600 70.00 60.00 200 40% 500 50.00 150 30% 400 40.00 100 20% 300 30.00 50 10% 200 20.00 0 0% 100 10.00 Mon Tue Wed Thu Fri LKR Mn 0 0.00 Mon Tue Wed Thu Fri LKR Mn Foreign Buying Foreign Selling This Week(T/O) Last Week (T/O) This Week (VOL) Last Week (VOL) Foreign Contribution MARKET STATISTICS For The Week Daily Description POINTS % CHANGE 7-Sep-13 30-Aug-13 Points 7-Sep-13 6-Sep-13 ASPI (161.40) -2.77% 5,672.64 5,834.04 (14.35) 5,672.64 5,686.99 S&P SL20 (84.16) -2.58% 3,177.17 3,261.33 (0.95) 3,177.17 3,178.12 MARKET PER (X) 16.13 16.59 16.13 MARKET PBV (X) 2.15 2.22 2.15 FOREIGN PARTICIPATION CHANGE % CHANGE This Week Last Week % CHANGE 7-Sep-13 6-Sep-13 TOTAL FOREIGN BUYING (82,091,420) -10.59% 692,877,100 774,968,520 -43.78% 104,939,744 186,646,125 TOTAL FOREIGN SELLING 140,848,101 23.92% 729,753,354 588,905,253 -57.36% 108,321,796 254,022,374 TOTAL FOREIGN INFLOW/(OUTFLOW) (222,939,521) -119.82% (36,876,254) 186,063,267 -94.98% (3,382,052) (67,376,249) MARKET TURNOVER & VOLUME CHANGE % CHANGE This Week Last Week % CHANGE 7-Sep-13 6-Sep-13 TOTAL TURNOVER (LKR Mn) (700,506,917) -28.83% 1,729,125,051 2,429,631,968 -50.73% 239,302,509 485,713,036 TOTAL VOLUME (26,893,057) -16.40% 137,108,435 164,001,492 -2.91% 21,319,610 21,957,802 SECTOR STATISTICS PER (x) PBV (x) 7-Sep-13 30-Aug-13 % CHANGE 7-Sep-13 6-Sep-13 BANK FINANCE AND INSURANCE 9.30 1.60 12,377.26 12,599.57 0.53% 12,377.26 12,311.43 BEVERAGE FOOD AND TOBACCO 21.80 6.30 19,499.08 20,351.90 -1.77% 19,499.08 19,850.75 CONSTRUCTION AND ENGINEERING 12.80 1.50 2,629.03 2,691.40 -0.18% 2,629.03 2,633.83 CHEMICALS AND PHARMACEUTICALS 7.50 1.30 6,473.54 6,701.20 1.77% 6,473.54 6,360.64 DIVERSIFIED HOLDINGS 20.70 2.00 1,668.56 1,715.15 -0.44% 1,668.56 1,675.97 HOTELS AND TRAVELS 65.10 3.80 3,117.65 3,155.87 0.32% 3,117.65 3,107.61 HEALTH CARE 24.70 2.40 635.50 649.85 0.43% 635.50 632.77 INVESTMENT TRUSTS 26.40 1.20 16,212.42 16,766.49 0.21% 16,212.42 16,178.32 INFORMATION TECHNOLOGY 8.10 0.70 48.29 49.85 1.17% 48.29 47.73 LAND AND PROPERTY 8.60 0.80 504.40 528.68 -0.08% 504.40 504.79 MANUFACTURING