Tuesday, May 21, 2013

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

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.

source - www.ft.lk

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