Bourse on steady platform as investors tighten grip on steady plays – Softlogic

After slowing down last week, the bourse moved on a volatile note but with the broader index managing to secure marginal gains throughout the week. Investor focus was predominantly centred upon the quality stocks as a number of large off market deals continuously assisted to fuel turnover levels.

The ASPI and S&P SL20 mostly moved on a similar pattern closing with 62 and 63 point gains WoW at 5,971.9 and 3,240.9 points. However, the liquid MPI showcased steeper fluctuations primarily driven by retail and high net worth play in mid to low caps of the calibre.

The index advanced 112 points WoW to close at 5,646.0 points. The week’s average turnover and volume read Rs. 2,007 million and 66.7 million shares respectively. Aitken Spence’s stake change: Aitken Spence emerged to lead the week’s turnover primarily resulting from a c.6% stake change (24.3 million shares) at Rs. 130.0 on Wednesday. The counter hence added c.30% to the total weekly turnover as it closed with a 4% advance at Rs. 128.9.

Crossings fuel turnover: The week registered a sequel of off - market deals throughout. Heavy foreign buying into Asiri Hospital Holdings led it to record 13 crossings totalling to around 81.5 million shares at prices Rs. 11.4 and Rs. 11.5. The counter along with its subsidiary, Asiri Surgical Hospitals, was seen trading on their 52 – week highs at Rs. 12.0 and Rs. 8.9 as they closed with 6% and 1% gains at Rs. 11.5 and Rs. 8.4 respectively. Interest didn’t fade away in John Keells Holdings as the heavyweight witnessed further 11 crossings totalling to 1.4 million shares at prices between Rs. 222.0 to Rs. 228.0. Commercial Bank joined in the crossings list as 6 off market deals carrying around 6 million shares were taken on the counter on Friday at Rs. 115.0. Sampath Bank also recorded 2 parcels carrying a total of 460,400 shares at prices Rs. 211.0 and Rs. 214, whilst voting and non – Voting shares of Hatton National Bank registered a block each of 200k and 514,100 shares being changed at Rs. 166.0 and Rs. 115.0 respectively.

Further, a crossing each was registered in Dialog Axiata, Ceylon Tobacco, Nestle Lanka and Distilleries during the week. Renewed play in Dipped Products and Dunamis Capital led them to register a crossing each on Friday.

Investor chase in National Development Bank and its related companies Aviva NDB Insurance and NDB Capital subdued after the anticipated deal struck on Friday: With the anticipated sale of Aviva NDB Insurance by National Development Bank (41.4% effective stake) through its 99.6% owned subsidiary NDB Capital, all three shares soared in value as each renewed their 52 – week highs at Rs. 448.9, Rs. 155.0 and Rs. 510.0 respectively. The official disclosure regarding the above sale was announced on Thursday which stated that a 92.3% stake in Aviva NDB Insurance was to be acquired by Asian insurance giant AIA for a net consideration of USD109 million, with USD59 million being received by the NDB group. All three counters lost some steam following the announcement, yet managed to close the week with 1%, 12% and 8% gains at Rs. 374.7, Rs. 149.4 and Rs. 479.8 respectively.

S&P SL20 index in brief: The index turned green as it advanced 63 points WoW to close at 3,240.9 points. Dialog Axiata (+12.5% WoW), National Development Bank (+11.8% WoW), Distilleries (+5.4%), John Keells Holdings (+4.1%), Aitken Spence (+3.9% WoW) and Nestle Lanka (+6.8%) weighed positively on the index. More large trades: Large on board deals were witnessed in Dialog Axiata, Piramal Glass, Ceylinco Insurance, Access Engineering, Tocuhwood, Asiri Hospital Holdings, John Keells Holdings and National Development Bank. Foreign Activity remained unscathed: Foreigners remained net buyers with significant accumulation in Asiri Hospital Holdings, Dialog Axiata, John Keells Holdings, Panasian Power, Commercial Bank, Distilleries, Richard Peiris Company, Hatton National Bank [Non-Voting], Access Engineering, Nestle Lanka, Chevron Lubricants Lanka, Piramal Glass and National Development Bank. (Source: Softlogic Stockbrokers)