Lanka Securities Market Round up 13 July 2015

Colombo bourse continued the winning streak for the third day and closed the session with gains on a critical day for domestic politics. Accepting nominations for the August general election was closed today and major political parties handed over the much debated nominations lists to the election commissioner.

In today’s trading session ASI crossed 7,000 mark after five days and closed at 7,002.78 with a gain of 18.66 points (+0.3%) while S&P SL 20 index gained 11.17 points (+0.3%) to close at 3,916.44. Blue-chips drove the index to the positive territory where notable contributions were made by Cargills (closed at LKR 145.00, +7.3%), Dialog Axiata (closed at LKR 10.50, +1.9%) and Sri Lanka Telecom (closed at LKR 46.00, +3.6%).

Daily market turnover was LKR 531mn. Market breadth was positive with gainers
outweighing losers 143 to 78 while 55 counters remain unchanged. Cash map improved from 66% to 56%. Nine counters touched 52 week low prices today while five counters reached 52 week high prices and among them were Vidullanka (LKR 9.40) and Kelani Cables (LKR 110.00) which continued their positive momentum to the new week.

Kegalle Plantations was the star performer of the day subsequent to its spectacular dividend of LKR 45.00 per share. Kegalle Plantations, the cash rich plantation among regional plantation companies held approximately LKR 2.5bn in short term investments by 31st March 2015 and through the dividend, the company will distribute approximately LKR 1.1bn to its shareholders. The counter reached a 52 week high of LKR 146.60 during the session but closed at LKR 140.00 with a gain of 47%. Subsequent to the dividend announcement, the share price of Richard Peiris & Co, the parent company of Kegalle Plantations, inclined to a high of LKR 8.60 but closed lower at LKR 7.90, +4%. Further interest were seen in related party companies such as Maskeliya Plantations (LKR 10.20,+4%), Namunukula Plantations
(LKR 74.00,+12%), Richard Peiris Exports (LKR 148.50,+4%).

On the other hand, plantations companies gained ground for the second consecutive session and several plantation companies closed with notable returns but on low volume. Among these were Udupussellawa Plantations (LKR 31.40,+9%), Kelani Valley Plantations (LKR 66.90,+8%), Madulsima Plantations (LKR 10.20,+6%), Kotagala Plantations (LKR 25.00,+6%), Balangoda Plantations (LKR 21.00,+5%).