Lanka Securities Market Roundup 27 May 2015

Colombo shares ended in negative territory for the third consecutive session despite favorable dividend announcements and further decline in Treasury bill rates. The main index shed 8.28 points or 0.11% to record a nearly two week low of 7,253.50. S&P SL 20 index lost 6.95 points (-0.17%) to end at 4,030.86.

The index was mainly dragged by price declines in counters such as Hemas Holdings (closed at LKR 79.00, -4.4%), Ceylon Brewery (closed at LKR 860.00, -7.0%) and Distilleries (closed at LKR 272.00, -1.6%).

Daily market turnover crossed LKR 1bn mark for the second consecutive session to record LKR 1.5bn. Several crossings were recorded in Commercial Bank (1.5mn shares at LKR 164.00 per share) and National Development Bank (0.7mn shares at LKR 275.00 per share). Total crossings accounted for 28% of the market turnover.

Large cap banking sector counters topped the turnover list today where Commercial Bank emerging as the top contributor to the market turnover with LKR 279mn followed by National Development Bank (LKR 192mn) and Seylan Bank non-voting (LKR 130mn).

Reflecting the unfavorable investor sentiments, losers offset the gainers 117 to 88 while 56 counters remained unchanged. Cash map improved to 52% from 44%. 10 counters advanced to 52wk high prices while 9 counters dropped to 52wk low prices. Central Finance announced that the company’s debenture issue which was opened today was oversubscribed and the issue was closed today.

Meanwhile Lanka Ceramic and Malwatte Plantations declared dividends during the trading session. Lanka Ceramic declared a final dividend of LKR 1.50 per share while Malwatte Plantations declared a first & final dividend of LKR 0.025 per share. Subsequent to the dividend announcement Lanka Ceramic advanced today to close at LKR 123.00, +2.5%.

Further Dolphin Hotels declared an interim dividend of LKR 1.50 today. Following the announcement, the counter advanced to LKR 60.00, +7.1%. In addition Hotel Sigiriya declared an interim dividend of LKR 5.00 per share which translated to a 5.5% dividend yield. The counter advanced to LKR 94.90 during the session but closed at LKR 93.00, +3.1%. Lanka IOC continued the negative momentum to record a 52wk low price of LKR 29.00, -8.8%, but closed at LKR 29.50, -7.2%.