October 26, 2018 (LBO) – Shares in Colombo Stock Exchange (CSE) bellwether John Keells Holdings (JKH) have been in rally mode since touching multiyear lows of Rs126/share a few weeks ago.
The stock closed the day up 3.4% to Rs140/share on volume of approximately Rs150mn. Shares in JKH were active yesterday as well with close to Rs1nm worth of shares transacted. Market capitalisation of the company is now comfortably over US$1bn.
JKH stock is now up over 10% of the lows touched just a few weeks ago. Despite the rally the shares are still trading below book value. Earnings results for the quarter ended September 30th are expected soon.
The broader market was up on the day with the ASPI up 1% and the S&P SL 20 up close to 3%. Todays’s rally on decent volume of Rs1.5bn is welcome respite from what has been a tough 2018.
Year to date the ASPI is down close to 8% while the S&P SL 20 is down close to 18%. The total market PE is under 10, and Price to Book is close to 1.
Stocks have looked cheap for some time but have struggled to put together a sustainable rally this year.