Market crashes as inflation skyrockets – Acuity Stockbrokers

The Bourse ended the week on a negative note this week with ASPI decreasing by 193.71points (or 2.53%) to close at 7,457.48 points, while the S&P SL20 Index also decreased by 89.93 points (or 3.64%) to close at 2,380.26 points.

Turnover & Market Capitalization

Expolanka was the highest contributor to the week’s turnover value, contributing LKR 1.28Bn or 24.51% of the total turnover value. Lanka IOC followed suit, accounting for 24.19% of turnover (value of LKR 1.27Bn) while Browns Investments contributed LKR 0.36Bn to account for 6.84% of the week’s turnover. The total turnover value amounted to LKR 5.23Bn (cf. last week’s value of LKR 4.62Bn), while the daily average turnover value amounted to LKR 1.05Bn (13.23% W-o-W) compared to last week’s average of LKR 0.92Bn. Market capitalization meanwhile, decreased by 3.31% W-o-W (or LKR 110.80Bn) to LKR 3,232.60Bn cf. LKR 3,343.40Bn last week.

Liquidity (Value & Volume)

Transportation Industry Group was the highest contributor to the week’s total turnover value, accounting for 24.51% (or LKR 1.28Bn) of market turnover. Industry Group’s turnover was driven primarily by Expolanka which accounted for 99.99% of the sector’s total turnover. Energy Group meanwhile accounted for 24.20% of the total turnover value while Capital Goods Group contributed 12.51% to the weekly turnover.

The Diversified Financials Industry Group dominated the market in terms of share volume, accounting for 43.59% (or 124.72Mn shares) of total volume, with a value contribution of LKR 0.38Bn. The Food Beverage & Tobacco Industry Group followed suit, adding 18.59% to the total volume (53.19Mn shares) while the Capital Goods Group contributed 6.97% (19.94Mn shares) to the weekly share volume.

Dividend Announcements

Company DPS (Rs.) Final/Interim XD From; Carson Cumberbatch PLC 1.50 First Interim Dividend 6-Jul-2022; Ex-Pack Corrugated Cartons PLC 0.40 Third Interim Dividend 7-Jul-2022; Lanka Ashok Leyland PLC 10.00 First and Final Dividend 12-Aug-2022; Cargills (Ceylon) PLC 5.00 Final Dividend 29-Jul-2022; C T Holdings PLC 3.00 Final Dividend 1-Aug-2022; Citizens Development Business Finance PLC-Voting 3.75 First and Final Dividend 1-Aug-2022; Citizens Development Business Finance PLC-Non Voting 3.75 First and Final Dividend 2-Aug-2022; Senkadagala Finance PLC 1.40 Final Dividend 1-Sep-2022.

Key Economic Indicators June Prime Lending Rate: 21.94; Ave. Wtd. Deposit Rates: 8.41; Ave. Wtd. Fixed Dep. Rates: 11.06; CCPI Inflation Y-o-Y %: 54.6.

Net Foreign Position

Foreign investors were net buyers this week with a total net inflow amounting to LKR 0.07Bn relative to last week’s total net outflow of LKR 0.25Bn (129.4% W-o-W). Total foreign purchases increased by 39.5% W-o-W to LKR 0.13Bn from last week’s value of LKR 0.09Bn, while total foreign sales amounted to LKR 0.05Bn relative to LKR 0.35Bn recorded last week (-84.2% W-o-W).