Crossing of 4.5% JKH stake boosts CSE turnover to two year high of Rs. 12.2 b

Thursday, 8 February 2024 04:37 - - {{hitsCtrl.values.hits}}

The Colombo stock market continued its positive momentum amidst a two year high turnover of Rs. 12.2 billion due to an internal transfer of 61.9 million shares or 4.5% stake in John Keells Holdings by Canada’s Fairfax.

Indices behaved erratically however throughout the session before closing marginally up. ASPI was up 2.6 points or 0.02% and S&P SL20 gained 0.13% or 4 points. Foreign investors remained net sellers.

Fairfax-linked HWIC Asia Fund at present holds 119.2 million shares or 8.6% stake in JKH and it acquired a related party stake of 61.9 million shares or 4.5% held via Citigroup Global Markets Ltd. Agency Trading Prop Securities.

Asia Securities said the indices edged higher largely on the back of price gains in CALT (+6.9%), CFVF (+6.3%), FCT (+5.3%), RCL (+3.6%), UAL (+2.4%), TILE (+2.4%), and COMB (+1.5%).

CINS (-2.0%), LMF (-2.5%), SLTL (-2.1%), AHUN (-2.9%), and MGT (-1.5%) dragged the ASPI down during the session. RICH (+11 points), COMB (+8 points), and RCL (+5 points) came in as the major index movers while CINS (-8 points) and MELS (-3 points) ended as the biggest laggards on the ASPI. The breadth of the market was positive with 77 price gainers and 87 decliners.

Market turnover surged mainly due to foreign-to-foreign transactions in JKH which amounted to Rs. 11.3 billion.

Foreigners recorded a net outflow of Rs. 125.7 million. Net foreign buying topped in TKYO.X at Rs. 11 million and selling topped in JKH at Rs. 107.3 million.

First Capital said the bourse ended in the green zone with a marginal three point gain in the index. ASPI was quite volatile today as the index reached a 27 point high towards midday but fell again towards the latter ending the day at 10,528. The largest positive contributors to the index were RICH, COMB and RCL whilst the largest negative contributors were CINS, MELS and DFCC.

An increased interest on primary sector counters was observed today, especially on FCT and CALT. The market saw a record two year high daily turnover as a result of two off-board transactions on JKH of 62 million shares at Rs. 183 each.

NDB Securities said crossings were witnessed in John Keells Holdings, Sampath Bank, LB Finance and National Development Bank accounting for 93.5% of the turnover.

Mixed interest was observed in Capital Alliance, First Capital Holdings and Expolanka Holdings whilst retail interest was noted in Browns Investments, Marawila Resorts and Hela Apparel Holdings.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 0.76%. The share price of John Keells Holdings increased by 75 cents to Rs. 183.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LB Finance, Capital Alliance and First Capital Holdings) whilst the sector index increased by 0.40%. The share price of LB Finance closed flat at Rs. 61. The share price of Capital Alliance recorded a gain of Rs. 3.10 to Rs. 48.10. The share price of First Capital Holdings appreciated by Rs. 1.80 to Rs. 30.50.

Sampath Bank was also included amongst the top turnover contributors. The share price of Sampath Bank lost 10 cents to Rs. 71.90.