Market rises alongside economic rebound – Acuity Stockbrokers
The Bourse ended the week on a positive note this week with ASPI increasing by 602.22 points (or 7.79%) to close at 8,333.37 points, while the S&P SL20 Index also increased by 279.78 points (or 11.43%) to close at 2,728.14 points.
Turnover & Market Capitalization
Lanka IOC was the highest contributor to the week’s turnover value, contributing LKR 2.96Bn or 20.53% of the total turnover value. Expolanka followed suit, accounting for 18.14% of turnover (value of LKR 2.62Bn) while Melstacorp contributed LKR 0.86Bn to account for 5.97% of the week’s turnover. The total turnover value amounted to LKR 14.43Bn (cf. last week’s value of LKR 5.09Bn), while the daily average turnover value amounted to LKR 2.89Bn (183.15% W-o-W) compared to last week’s average of LKR 1.02Bn. Market capitalization meanwhile, increased by 9.64% W-o-W (or LKR 320.09Bn) to LKR 3,641.63Bn cf. LKR 3,321.54Bn last week.
Liquidity (Value & Volume)
Energy Industry Group was the highest contributor to the week’s total turnover value, accounting for 20.54% (or LKR 2.96Bn) of market turnover. Industry Group’s turnover was driven primarily by Lanka IOC which accounted for 99.96% of the sector’s total turnover. Food Beverage & Tobacco Group meanwhile accounted for 14.17% of the total turnover value while Transportation Group contributed 18.15% to the weekly turnover.
The Food Beverage & Tobacco Industry Group dominated the market in terms of share volume, accounting for 28.57% (or 155.63Mn shares) of total volume, with a value contribution of LKR 2.73Bn. The Diversified Financials Industry Group followed suit, adding 24.22% to the total volume (131.91Mn shares) while the Capital Goods Group contributed 9.55% (52.03Mn shares) to the weekly share volume.
Company, DPS (Rs.), Final/Interim, XD From; Convenience Foods (Lanka) PLC, 3.50, Final Dividend, 13-Sep-2022; ACL Plastics PLC, 15.00, First Interim Dividend, 10-Aug-2022; Co-Operative Insurance Company PLC, 0.135, Final Dividend, 8-Aug-2022; Commercial Credit and Finance PLC, 2.00, Final Dividend, 12-Sep-2022; Kelani Cables PLC, 6.50, First Interim Dividend, 16-Aug-2022.
Key Economic Indicators July; Prime Lending Rate: 23.23%; Ave. Wtd. Deposit Rates: 9.56%; Ave. Wtd. Fixed Dep. Rates: 12.6%; CCPI Inflation Y-o-Y %: 60.8%.
Net Foreign Position
Foreign investors were net sellers this week with a total net outflow amounting to LKR 0.475Bn relative to last week’s total net inflow of LKR 0.294Bn (-261.5% W-o-W). Total foreign purchases increased by 3.9% W-o-W to LKR 0.64Bn from last week’s value of LKR 0.62Bn, while total foreign sales amounted to LKR 1.12Bn relative to LKR 0.33Bn recorded last week (243.9% W-o-W).