CSE posts 1-year high turnover of Rs. 18.4 b due to JKH share transfers

The Colombo stock market yesterday posted a one-year high turnover of Rs. 18.4 billion owing to an internal transfer within the single largest shareholder in JKH, though overall investor sentiment remained somewhat erratic.

The All Share Price Index closed with a gain of 12.5 points and S&P SL20 improved by 22 points. Turnover of Rs. 18.4 billion was via trading of only 207.2 million shares.

JKH saw 80.65 million of its shares traded for Rs. 12.98 billion. Single biggest shareholder, the Canada-based global financial services giant Fairfax, transferred part of its holding via Citigroup Global Markets Ltd. Agency Trading Prop Securities to related party HWIC Asia Fund.

Citigroup Global Markets Ltd. Agency Trading Prop Securities as of 30 September 2021 held 141.85 million shares, or 10.7%. Of that, 80.16 million shares were transferred to HWIC Asia Fund via two crossings at Rs. 161 per share. The balance stake is expected to be transferred as well to HWIC Asia Fund which held 39.2 million shares, or 3.2% stake, in JKH as of 30 September 2021.

Asia Securities said that, after witnessing an early plunge, the indices had bounced back strongly in the second half of the session and managed to close in positive territory supported by price gains in EXPO, HAYL and CLC.

“Following a gap-up opening to 13,461 (+89 points), the ASPI sharply declined to an intra-day low of 13,239 (-133 points) due to price losses in LOLC, SHL and VONE. Subsequently, the index regained ground gradually and reversed all of its intra-day losses to close with a 13-point gain. Overall, 88 stocks closed higher while 138 ended lower,” Asia Securities said.

It also said foreigners recorded a net outflow of Rs. 43.1 million while their participation increased to 70.2% of turnover (previous day 1.9%). Net foreign buying topped in WAPO at Rs. 8.3 million while selling topped in AAIC at Rs. 35.2 million.

First Capital said the bourse ended in the green zone with a marginal gain amidst moderate retail participation. However, turnover hit a near one-year high, mainly boosted by the crossing trade of JKH which contributed to nearly 70% of the total turnover.

“The index plunged steeply soon after the market opened, subsequently hitting an intraday low of 13,233, displaying significant volatility but managed to recoup after the initial half hour. Thereafter, the index gradually gathered strength and moved positively followed by a sideways drift before closing for the day at 13,384,” First Capital said, adding that turnover was led by 77% contribution from the Capital Goods sector.

NDB Securities said the ASPI edged up as a result of price gains in counters such as Hayleys, Diesel & Motor Engineering and Expolanka Holdings. Crossings were witnessed in John Keells Holdings and Kelani Cables, accounting for 70.6% of the turnover.

It said mixed interest was observed in Expolanka Holdings, ACL Cables and Kelani Valley Plantations, whilst retail interest was noted in Browns Investments, Industrial Asphalts and Nation Lanka Finance. The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and ACL Cables), whilst the sector index gained 0.30%. The share price of John Keells Holdings increased by one rupee (0.62%) to close at Rs. 162. The share price of ACL Cables recorded a gain of Rs. 7.75 (6.46%) to close at Rs. 127.75.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index increased by 1.24%. The share price of Expolanka Holdings gained Rs. 4.75 (1.21%) to close at Rs. 395.75.

Browns Investments and Kelani Valley Plantations were also included amongst the top turnover contributors. The share price of Browns Investments closed flat at Rs. 16.80. The share price of Kelani Valley Plantations appreciated by Rs. 18.45 (18.96%) to close at Rs. 115.75.