Lanka securities Insight 30 July 2015

Colombo stocks declined on Monday, retreating from a 9-week high, as investors took some profit after three straight sessions of advances. Main index advanced to 7,280 mark in the opening hours but failed to maintain the momentum and declined by 21.82 index points (-0.30%) to close at 7,247.23. 20-scrip S&P SL index edged slightly lower by 3.98 index points or 0.01% to end at 4,067.67. Daily market turnover was LKR 1.1bn. Aitken Spence emerged as the top contributor to the turnover with LKR 153mn followed by John Keells Holdings and Distilleries with LKR 135mn and LKR 62mn respectively. HVA Foods was the most active counter for the session. Foreign investors were net buyers for the third consecutive session with a net inflow of LKR 65mn. Foreign participation was 27%.

Colombo equities brushed off losses made on previous session as blue chips helped lead the market higher on Tuesday. After the hesitant start, the ASI recouped and touched a high of 7,275.45 before settling at 7,261.07 with a gain of 13.84 index points or 0.19%. S&P SL 20 index edged high by 10.22 index points or 0.25% to close at 4,077.89. The market turnover was LKR 1.1bn. Premier blue-chip, John Keells Holdings, led the turnover list with LKR 255mn. Further, Overseas Realty (LKR 75mn), Laugfs Gasnonvoting (LKR 52mn), John Keells Holdings – warrant 22 (LKR 37mn) and Chevron Lubricants (LKR 28mn) made notable contributions to the turnover. John Keells Holdings warrants led the trades while HVA foods, Grain Elevators and Overseas Realty were also heavily traded in the session. Foreign investors were net sellers of LKR 213mn worth of equities and foreign activity represented 23% of the market turnover.