Bourse on mixed note with new interest rate guidance – Acuity Stockbrokers

The Bourse ended the week on a mixed note this week with ASPI increasing by 49.94 points (or 0.60%) to close at 8,315.55 points, while the S&P SL20 Index decreased by 17.87 points (or 0.65%) to close at 2,733.04 points.

Turnover & Market Capitalization

Expolanka was the highest contributor to the week’s turnover value, contributing LKR 2.33Bn or 23.53% of the total turnover value. Browns Investments followed suit, accounting for 21.87% of turnover (value of LKR 2.16Bn) while Lanka IOC contributed LKR 1.15Bn to account for 11.57% of the week’s turnover. The total turnover value amounted to LKR 9.90Bn (cf. last week’s value of LKR 9.83Bn), while the daily average turnover value amounted to LKR 1.98Bn (-19.41% W-o-W) compared to last week’s average of LKR 2.46Bn. Market capitalization meanwhile, increased by 2.06% W-o-W (or LKR 75.01Bn) to LKR 3,710.40Bn cf. LKR 3,635.40Bn last week.

Liquidity (Value & Volume)

Food Beverage & Tobacco Industry Group was the highest contributor to the week’s total turnover value, accounting for 27.72% (or LKR 2.74Bn) of market turnover. Industry Group’s turnover was driven primarily by Browns Investments which accounted for 78.91% of the sector’s total turnover. Transportation Group meanwhile accounted for 23.53% of the total turnover value while Diversified Financials Group contributed 13.85% to the weekly turnover.

The Diversified Financials Industry Group dominated the market in terms of share volume, accounting for 47.70% (or 353.17Mn shares) of total volume, with a value contribution of LKR 1.37Bn. The Food Beverage & Tobacco Industry Group followed suit, adding 32.03% to the total volume (237.14Mn shares) while the Insurance Group contributed 3.12% (23.12Mn shares) to the weekly share volume.

Dividend Announcements

Company, DPS (Rs.), Final/Interim, XD From; Aitken Spence Plantation Managements PLC, 11.00, Interim Dividend, 1-Jun-2022; John Keells Holdings PLC, 0.50, Final Dividend, 1-Jun-2022; CIC Holdings PLC – Voting, 1.00, Final Dividend, 1-Jul-2022; CIC Holdings PLC – Non-Voting, 1.00, Final Dividend, 1-Jul-2022; Samson International PLC, 2.00, Final Dividend, 2-Jun-2022; Prime Land Residencies PLC, 0.70, First Interim Dividend, 3-Jun-2022; Alumex PLC, 0.25, Final Dividend, 30-Jun-2022; C. W. Mackie PLC, 10.00, Final Dividend, 29-Jul-2022; Swisstek (Ceylon) PLC, 0.90, Third Interim Dividend, 6-Jun-2022; Watawala Plantations PLC, 8.00, Final Dividend, 27-Jun-2022; Lanka Tiles PLC, 1.90, Third Interim Dividend, 7-Jun-2022; Sunshine Holdings PLC, 0.50, Final Dividend, 27-Jun-2022.

Key Economic Indicators April 2022; Prime Lending Rate: 13.02%, Ave. Wtd. Deposit Rates: 5.52%, Ave. Wtd. Fixed Dep. Rates: 6.84%, CCPI Inflation Y-o-Y %: 29.8%.

Net Foreign Position

Foreign investors were net sellers this week with a total net outflow amounting to LKR 0.10Bn relative to last week’s total net outflow of LKR 0.18Bn (41.0%W-o-W). Total foreign purchases decreased by 31.9% W-o-W to LKR 0.24Bn from last week’s value of LKR 0.35Bn, while total foreign sales amounted to LKR 0.34Bn relative to LKR 0.53Bn recorded last week (-34.9% W-o-W).