JKH soars to a $ 2 b company; market cap tops 10% mark

COLOMBO, May 20 (Reuters) - Sri Lankan shares rose more than 1 percent on Monday to hit a 19-month high, led by market heavyweight John Keells Holdings amid continued foreign buying in blue chips.

The main stock index rose 1.35 percent, or 85.97 points, to close at 6,466.67, its highest since Oct. 14, 2011.

Foreign investors were net buyers of 288.4 million rupees ($2.28 million) of shares, extending net foreign inflows this year to 11.47 billion rupees.

'Retail and high net worth investors are getting into strategic position in large cap shares like Keells, while foreigners continued to collect blue chips,' a stockbroker said on condition of anonymity.

A fall in interest rates of fixed income assets has also helped boost sentiment in the share market as retail investors, who dominate the island nation's bourse in terms of volume, shift to equities from government securities.

Yields in treasury bills fell in the range of 29 basis points to 45 bps on Wednesday after the central bank cut key policy rates by 50 bps on May 10, following some of its regional peers, to boost economic growth amid subdued demand.

Shares in John Keells Holdings rose 4.28 percent to an all-time closing high of 297.10 rupees. Foreign investors bought more than 242,450 shares in Keells, bourse data showed.

Market turnover was 1.28 billion rupees on Monday, more than this year's daily average of 1.04 billion rupees.

The rupee ended flat at 126.30/35 as importer dollar demand offset the exporter sales of greenback, currency dealers said.

($1 = 126.3000 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)


(ranga.sirilal@thomsonreuters.com; +94-11-232-5540;
Reuters Messaging:ranga.sirilal.thomsonreuters.com@reuters.net; twitter.com/rangaba)

The Colombo bourse opened the week continuing its positive run to gain sharply with SOY (Convenience Foods Lanka), CIT (Colombo Investment Trust) and LLUB (Chevron Lubricants Lanka) taking the lead while trades in JKH, Com Bank and Royal Ceramics accounted for 40 percent of the day’s turnover.

The All Share Price Index gained 85.97 points to close 1.34 percent higher at 6,466.67 while the S&P SL20 closed 1.67 percent higher at 3,649.35, gaining 60.09 points during the day.

Turnover reached Rs. 1.28 billion while foreign purchases amounted to Rs. 350.89 million, leading to a net inflow of Rs. 288.35 million.

SOY closed 16.35 percent higher at Rs. 232 while CIT closed 13.28 percent higher at Rs. 159.90. LLUB gained 11.27 percent to close at Rs. 286.

SMB Leasing closed 20 percent lower at 40 cents while Chilaw Finance closed 16 percent lower at Rs. 2.10.

Off market deals saw 1.1 million Com Bank shares, 0.9 million Royal Ceramics Lanka shares and 0.5 million Light House Hotel shares change hands.

"The ASPI ended sharply higher for a fourth consecutive trading day, amid further gains in several large and mid-cap counters. Trades on JKH, COMB, and RCL collectively accounted for over 40% of market turnover inclusive of crossings," John Keells Stockbrokers said.

Meanwhile, the rupee strengthened slightly against the US dollar on Monday closing at Rs. 126.25/30 against the greenback from an opening position of Rs. 126.32/35.

Bond markets were stagnant ahead of the primary market auction of Treasury bills today (21) amounting to Rs. 15 billion.

Market liquidity contracted by about Rs. 2.04 billion after the Central Bank injected Rs. 10.75 billion into the system last Friday to ease liquidity concerns in the market.

Currency dealers said the Central Bank was keeping liquidity tight so as to minimise inflationary pressures caused by the surprise monetary policy rate cut by 50bps earlier this month.

Interbank money market rates were relatively unchanged.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=79458

Premier blue chip John Keells Holdings Plc’s (JKH) recent meteoric rise reached a climax yesterday when its market value crossed the $ 2 billion mark, thereby surpassing the 10% share of the CSE’s total.

Share price of JKH yesterday hit an intra-day high of Rs. 298.50 before closing at Rs. 297.10, up by Rs. 12.20. At yesterday’s closing the market capitalisation of JKH was a staggering Rs. 254.73 billion (slightly over $ 2 billion at an exchange rate of Rs. 126 or Rs. 127 to the dollar). JKH’s market cap was 10.14% of CSE’s total of Rs. 2.48 trillion.

The Daily FT on Friday exclusively reported JKH’s impending march towards the 10% milestone. At last week’s closing of Rs. 284.90, JKH’s market cap share was 9.84%.

JKH’s Rs. 12.20 rise yesterday was on top Rs. 16.60 gain last week and by Rs. 15.50 in the previous week.
In comparison to 2012 closing of Rs. 220, the current value of JKH shares reflects a Rs. 77 or 35% increase, reinforcing the fact that discerning investors keen on fundamentally strong blue chips can enjoy above average returns.

Softlogic Stockbrokers said JKH further neared its next psychological level Rs. 300 with heavy volume, topping the on-board turnover list. The counter witnessed a single large on-board transaction of 44,000 shares at Rs. 295 and ended the day with a gain of 4.2% at Rs. 297.10. Only a relatively low volume of half a million JKH shares traded yesterday.

Spearheaded by JKH’s gain as well as improved investor sentiments, the Colombo Bourse yesterday gathered further strength.

The ASI gained by 86 points (intra-day high was over 100 points) and S&P SL20 Index was up 60 points on a day which produced a healthy turnover of Rs. 1.28 billion. Overall market capitalisation rose by Rs. 33 billion whilst year to date gain of ASI is now close to 15% whilst S&P SL20’s return is over 18%.

Foreign investors were net buyers of Rs. 288.4 million extending net foreign inflows this year to Rs. 11.47 billion.

Commenting on the market, Softlogic said the bourse sustained its rally with notable buying pressure across the board. “During the early morning session, ASPI rushed on the rally to reach 103 points. However it lost momentum during the mid-day to denote a market correction and eventually picked up in the latter session ending at 6,466.67 points (+86 points),” it said.

Major contributors to the daily gains were John Keells Holdings (+4.3%), Nestle Lanka (10.2%) and Chevron Lubricants (11.3%). S&P SL20 too journeyed a similar path and ended with a gain of 60 points at 3,649.35 points.

Commercial Bank spearheaded the daily-turnover with notable off-board interest where the counter denoted four crossings totalling 1.3 million shares which were transacted at Rs. 122 each. Much interest was also seen on-board on Commercial bank with several large blocks, largest being 112,000 shares which was traded at Rs. 122 each. COMB witnessed a healthy price rally where it ended at a 52-week high of Rs. 122.1 with a 2.6% gain. The tile manufacturer Royal Ceramic Lanka too reported two crossings accumulating to 500,000 shares at Rs. 109.

Softlogic said counters on the BFI sector Sampath Bank, Nations Trust Bank and National Development Bank too attracted notable investor interest during the day. Retail interest surrounded Seylan Development, Overseas Reality and Colombo Fort Land & Building, it added.
http://www.ft.lk/2013/05/21/jkh-soars-to-a-2-b-company-market-cap-tops-10-mark/

JKH has become unstoppable unexpectedly. Many comments are given on present rosy picture with a red light in case few high caps back to normal price level. As long as foreigners are in the playing field the possession of the ball is with them. No one knows when they drop it.

worthiness wrote:JKH has become unstoppable unexpectedly. Many comments are given on present rosy picture with a red light in case few high caps back to normal price level. As long as foreigners are in the playing field the possession of the ball is with them. No one knows when they drop it.

May 30th profit has to be in the books.
Their financial year ends in November with quarterly reporting
May 30th is the end of the second quarter

Bond wrote:

worthiness wrote:JKH has become unstoppable unexpectedly. Many comments are given on present rosy picture with a red light in case few high caps back to normal price level. As long as foreigners are in the playing field the possession of the ball is with them. No one knows when they drop it.

May 30th profit has to be in the books.
Their financial year ends in November with quarterly reporting
May 30th is the end of the second quarter

On what planet does JKH's financial year end in November? Rainmaker problem of Reading the wrong books ?
JKH financial year ends in March, first quarter ends in June.

rainmaker?
You just got up after drunk yesterday night?
You sold JKH & went into the bar straight away right?

Jiggysaurus wrote:

Bond wrote:

worthiness wrote:JKH has become unstoppable unexpectedly. Many comments are given on present rosy picture with a red light in case few high caps back to normal price level. As long as foreigners are in the playing field the possession of the ball is with them. No one knows when they drop it.

May 30th profit has to be in the books.
Their financial year ends in November with quarterly reporting
May 30th is the end of the second quarter

On what planet does JKH's financial year end in November? Rainmaker problem of Reading the wrong books ?
JKH financial year ends in March, first quarter ends in June.

Foreign funds have to file a return to the Hong Kong or Singapore. Quarter 2 closes soon. Performance reviews are every 2 quarters.

Bond, Bond you got the month wrong
maybe your smoking stuff from a bong
some say you are the maker of rain
sometimes you can be a real pain

All in All you are a nice guy
remember things from a bong can make you fly
come on - give us some real news not half the deta
what are the shares that will outperform beta

LOL.

And yes to the bolded part.

besthope wrote:Bond, Bond you got the month wrong
maybe you had some stuff from a bong
some say you are the maker of rain
sometimes you can be a real pain

All in All you are a nice guy
remember things from a bong can make you fly
come on - give us some real news not half the deta
what are the shares that will outperform beta

besthope wrote:Bond, Bond you got the month wrong
maybe your smoking stuff from a bong
some say you are the maker of rain
sometimes you can be a real pain

All in All you are a nice guy
remember things from a bong can make you fly
come on - give us some real news not half the deta
what are the shares that will outperform beta

Your quite good with poems. I saw something on another thread which was quite cool.

Anyway the month end for foreign funds in Q2 is end of May. That is because the close of the financial year is 30th November.

http://www.jpmorganassetmanagement.lu/EN/dms/JPMLiqF%20AGM%202013%20Notice%20%5BLUC%5D%20%5BLU_EN%5D.pdf