BRS Market Report- Week III: 15th – 19th January 2018

Week III: 15th – 19th January 2018 – BRS Weekly Market Report

The Week at a Glance

Market nudges lower  

Market continued with last week’s negativity and extended losses for the second straight week to lose LKR 1.8bn in value, amidst profit taking throughout, with the exception of Friday. Market participants seemed to follow a wait and watch approach ahead of December earnings release, which in our view, would decide the fate of the index in the short-mid run. We witnessed some speculative activity on Plantation and Banking sector counters with interest on the latter skewing towards the selling side, thus attributing the overall dip in the index WoW to the weakness in banking sector counters. Heavy weight JKH traded actively, relatively on large volumes and gained LKR 5.90 WoW, softening the overall impact to the index. Foreign buying continued through to this week to report a net foreign inflow of LKR 343mn. The continuous foreign buying we believe is due to attractive valuations and improving macro landscape. The benchmark ASPI lost 30.12 points and closed at 6,443.50 points while S&P SL20 followed suit to lose 31.72 points to close at 3,735.48 points. From the macro front, Central Bank has called for proposals from banks and investment houses to sell USD 2bn in sovereign bonds in 2018. CBSL is moving in to the market early in 2018 before the US raises Fed rates further.

Average daily turnover at LKR 1.08bn

Holiday shortened week of four days resulted in market reporting a turnover of LKR 4.34bn, posting an average daily turnover of LKR 1.08bn, ~30% higher WoW. Interest on JKH, HNB, SAMP and COMB supported this weeks’ turnover. Negotiated deals accounted for ~60% of the week’s turnover and ~26% of the volumes. A total of 48mn shares changed hand during the course of the week with ~29% being foreign volume. Foreigners were net buyers, reporting a net foreign inflow of LKR 343mn. HNB and SAMP saw the highest net foreign inflow while COMB and JKH witnessed the highest outflow. DIAL has raised its stake in an E – learning firm Headstart Private Limited to over 50% by converting bonds to equity.

Gainers and losers

Diversified and Plantation sectors were more resilient during the week and gained 1.2% and 0.6% respectively, while Land & property and Investment sectors lost the most.

For the full Report including Global Market Indices, CSE Market Statistics, All Share Price Index, SL FX Rates, Weekly Summary, Foreign Purchases vs Sales, Net Position on Foreign Holdings, Announcements, Weekly Sector Gainers and Losers, Sector Multiples, Weekly Crossings, BRS Stocks in Focus and Contact Details please click the link below

BRS Weekly Report – 19.01.2018

Source: Bartleet Religare Securities

Image Courtesy: Bartleet Religare Securities