By Charindra Chandrasena
Shares of the leading listed banks and premier blue chip John Keells Holdings PLC (JKH) closed trading below the Rs. 100 mark at the Colombo Stock Exchange (CSE) yesterday (12) for the first time since 2009.
This rare sight was mainly possible due to JKH falling 12.14% from the Rs. 107.10 close on Monday (11) to close at Rs. 94.10 yesterday. It was supported by Sampath Bank, which was the highest valued banking stock on Monday at exactly Rs. 100, closing at Rs. 99.90 yesterday, bringing all banking stocks down to double-digit prices.
According to seasoned market watchers, the last occasion all these stocks fell below the Rs. 100 mark was back in 2008 when the All Share Price Index (ASPI) crashed 41% following the Seylan Bank and Sakvithi scandals and the 2007/2008 global financial crisis. They hovered around those prices till around the time the war ended.
Speaking to The Morning Business yesterday, CSE Chairman Ray Abeywardena reiterated the points he made in an interview with us published on Monday ahead of the market's long awaited opening titled 'Tremendous value for long-term investors now: CSE Chairman'.
Pointing to the 11-year lows these top stocks had hit, he said that this was the ideal time to buy for long-term investors.
"Such low valuations are extremely rare and they present bargain hunters the perfect buying opportunity if they take a long-term view."
Apart from Sampath Bank, all other banks had been trading below Rs. 100. Sri Lanka’s largest private commercial bank, Commercial Bank of Ceylon PLC was trading at Rs. 55 on Monday and it closed at Rs. 55.10 yesterday, a rise of 0.18%.
The second largest private commercial bank, Hatton National Bank PLC, was trading at Rs. 91.70 per share yesterday from Rs. 95 on Monday, a drop of 3.47%. Seylan Bank PLC shares were trading at Rs. 29.9 yesterday from its previous close of Rs. 25.50, gaining 17.25%.
Nations Trust Bank PLC (NTB) was trading at Rs. 52.80 per share yesterday, down 16.46% to Rs. 63.20 while National Development Bank PLC’s share price declined 2.67% to Rs. 58.40 from its previous close of Rs. 60. The share price of Union Bank of Colombo PLC gained 6.15% from its previous close of Rs. 6.50 on Monday when it closed at Rs. 0.40. DFCC Bank PLC shares were trading at Rs. 50, down 9.09% from Rs. 55 on Monday and Pan Asia Banking Corporation PLC was trading at Rs. 7.40, up 21.31% from Monday’s Rs. 6.10.
Of these, Sampath Bank, Commercial Bank, and JKH accounted for 35% of yesterday’s turnover, excluding an internal transaction of Watawala Plantations PLC, owing to the heavy foreign outflow witnessed on these counters. The ASPI fell 144.48 points or 3.29% to 4,247.95 points yesterday.JKH and banks' shares below Rs. 100 for first time since 2009
13 May 2020
JKH and banks' shares below Rs. 100 for first time since 2009
13 May 2020
By Charindra Chandrasena
Shares of the leading listed banks and premier blue chip John Keells Holdings PLC (JKH) closed trading below the Rs. 100 mark at the Colombo Stock Exchange (CSE) yesterday (12) for the first time since 2009.
This rare sight was mainly possible due to JKH falling 12.14% from the Rs. 107.10 close on Monday (11) to close at Rs. 94.10 yesterday. It was supported by Sampath Bank, which was the highest valued banking stock on Monday at exactly Rs. 100, closing at Rs. 99.90 yesterday, bringing all banking stocks down to double-digit prices.
According to seasoned market watchers, the last occasion all these stocks fell below the Rs. 100 mark was back in 2008 when the All Share Price Index (ASPI) crashed 41% following the Seylan Bank and Sakvithi scandals and the 2007/2008 global financial crisis. They hovered around those prices till around the time the war ended.
Speaking to The Morning Business yesterday, CSE Chairman Ray Abeywardena reiterated the points he made in an interview with us published on Monday ahead of the market's long awaited opening titled 'Tremendous value for long-term investors now: CSE Chairman'.
Pointing to the 11-year lows these top stocks had hit, he said that this was the ideal time to buy for long-term investors.
"Such low valuations are extremely rare and they present bargain hunters the perfect buying opportunity if they take a long-term view."
Apart from Sampath Bank, all other banks had been trading below Rs. 100. Sri Lanka’s largest private commercial bank, Commercial Bank of Ceylon PLC was trading at Rs. 55 on Monday and it closed at Rs. 55.10 yesterday, a rise of 0.18%.
The second largest private commercial bank, Hatton National Bank PLC, was trading at Rs. 91.70 per share yesterday from Rs. 95 on Monday, a drop of 3.47%. Seylan Bank PLC shares were trading at Rs. 29.9 yesterday from its previous close of Rs. 25.50, gaining 17.25%.
Nations Trust Bank PLC (NTB) was trading at Rs. 52.80 per share yesterday, down 16.46% to Rs. 63.20 while National Development Bank PLC’s share price declined 2.67% to Rs. 58.40 from its previous close of Rs. 60. The share price of Union Bank of Colombo PLC gained 6.15% from its previous close of Rs. 6.50 on Monday when it closed at Rs. 0.40. DFCC Bank PLC shares were trading at Rs. 50, down 9.09% from Rs. 55 on Monday and Pan Asia Banking Corporation PLC was trading at Rs. 7.40, up 21.31% from Monday’s Rs. 6.10.
Of these, Sampath Bank, Commercial Bank, and JKH accounted for 35% of yesterday’s turnover, excluding an internal transaction of Watawala Plantations PLC, owing to the heavy foreign outflow witnessed on these counters. The ASPI fell 144.48 points or 3.29% to 4,247.95 points yesterday.Kapruka
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