Lanka Securities Market Round up 17 September 2015

Colombo bourse extended losses for the third consecutive session amid domestic economic worries as the World Bank warned developing countries of a possible financial turbulence if US Fed decides to increase interest rates today.

The investors’ remain cautious on weakening rupee, high interest rates which dragged the index to the negative zone. Rupee was further pressured as the selling rate crossed LKR 143.00 level today with a year-to-date drop of 7.3%.

Benchmark All Share Price index lost 23.89 points or 0.33% to end at 7,113.51 while S&P SL 20 index lost 14.55 points or 0.37% to end at 3,885.08.

The losses were mainly driven by price depreciations in counters such as John Keells Holdings (closed at LKR 173.00, -1.1%), Commercial Credit and Finance (closed at LKR 59.90, -3.1%) and Hatton National Bank (closed at LKR 215.00, -1.2%). Both John Keells Holdings Warrants recorded losses as Warrant 0022 recorded a new 52wk low price of LKR 7.30 (closed at LKR 7.40, -7.5%) while Warrant 0023 dropped to LKR 35.00, but recovered to close at LKR 35.70, -0.8%.

Finance sector counters continued to decline in today’s session where stocks such as LB Finance (LKR 115.00,-5.1%), LOLC (LKR 98.00,-2.0%), Peoples Leasing (LKR 22.20,-1.8%) closed with negative returns.

Market turnover was LKR 658mn. Hemas Holdings topped the turnover list with LKR 102mn underpinned by a single crossing of 1.1mn shares which changed hands at LKR 88.00 per share. Another crossing was recorded in Tokyo Cement non-voting (0.5mn shares at LKR 41.00 per share). Total crossings accounted for 18% of the market turnover. Further, People’s Leasing (LKR 58mn), Tokyo Cement non-voting (LKR 52mn) and ACL cables (LKR 45mn) recorded next best contributions to the turnover.

Kalamazoo Systems led the trades while Ceylon Grain Elevator, Office equipment and Sanasa Development Bank were among top trading counters for the session. Kalamazoo Systems recorded a fresh 52wk high price of LKR 4,440.00, +25%, but closed at LKR 3,980.00, +12%. Along with Kalamazoo Systems, the shares of Office Equipment advanced to a 52wk high price of LKR 2,864.00, +25%.

Reflecting the lackluster investor sentiments, losers surpassed the gainers 116 to 85 while 57 counters remained unchanged. The selling pressure dragged the cash map further down from 52% to 37%. 17 counters declined to 52wk low prices while 03 counters advanced to 52wk.