Play on JKH boosts bourse but YTD net foreign selling tops Rs. 34 b mark

Foreign and local deals on premier blue chip John Keells Holdings (JKH) boosted the Colombo bourse yesterday, driving investor spirits high. 

Around 13 million JKH shares (1% stake) were transacted for Rs. 1.74 billion via 413 trades. Its share price gained by Rs. 2 to close at Rs. 135. JKH’s 1.5% gain was enough to make it the second biggest contributor (6.1%) to the increase in the All Share Price Index yesterday apart from being the highest contributor to the turnover. 

Of the traded amount, 8.5 million shares were done at Rs. 133.50 via six crossings and a further 500,000 shares at Rs. 133.60 via two crossings. Net foreign selling amounted to 8.4 million shares worth Rs. 1.13 billion, suggesting the balance were sold by locals. 

Brokers and analysts said institutional investors dominated in both selling and buying side and a few high net worth investors. Speculation was that a Sri Lanka registered company Sisil Investments Ltd, but owned by a Singapore party had bought bulk of the JKH shares in addition to Don & Don Ltd., owners of which are said to be linked to LOLC controlling shareholders. 

After uneasy sentiments in past few sessions, the CSE yesterday was very active with the ASPI up 1.02% or 54.34 points to close at 5,370.39 points, while the S&P SL20 Index also increased by 1.18% or 27.12 points to close at 2,334.76.

Turnover increased by 149.2% relative to Tuesday to Rs. 3.13 billion. Crossings amounted to 41.2% the day’s total turnover. 

Frist Capital said index heavy counters brought the heat back to the market recording the highest gain after three weeks sustaining the drive in the positive direction for the second consecutive session. 

“ASPI witnessed an upward movement since the beginning of the session predominantly due to the buying interest in Capital Goods and Food and Beverage counters and closed at 5,370 with an advance of 54 points,” it said. 

Capital Goods counters ruled the turnover contributing 63% led by JKH. Moreover, the parcel trades boosted the turnover amounting to 41%. 

First Capital said market experienced the highest net foreign outflow almost after a month while recording moderate participation. Year to date net foreign selling increased to Rs. 34.5 billion after yesterday’s Rs. 1.29 billion. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Ceylon Cold Stores, John Keells Holdings and Ceylon Tobacco Company.

Crossings were witnessed in John Keells Holdings, DFCC Bank, Lanka Milk Foods and Melstacorp, accounting for 41.2% of the turnover. 

Mixed interest was observed in Expolanka Holdings whilst retail interest was noted in ACL Cables, Sampath Bank and Tokyo Cement Company.

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and ACL Cables) whilst the sector index gained 1.56%. The share price of John Keells Holdings increased by Rs. 2.00 (1.50%) closing at Rs. 135.00 whilst foreign holdings decreased by 8,413,676 shares. 

The share price of ACL Cables recorded a gain of Rs. 1.80 (3.76%) to close at Rs. 49.70.

The Banking sector was the second highest contributor to the market turnover (due to DFCC Bank and Sampath Bank) whilst the sector index increased by 1.31%. The share price of DFCC Bank moved up by Rs. 0.70 (1.04%) to close at Rs. 67.70 while the share price of Sampath Bank appreciated by Rs. 1.10 (0.90%) to close at Rs. 123.30. Expolanka Holdings was also included amongst the top turnover contributors while, the share price of Expolanka Holdings gained Rs. 0.60 (9.52%) to close at Rs. 6.90.