Lanka Securities Market Round up 5 August 2015

Colombo equities continued the upswing after the break in yesterday’s session to close at a six-month high despite the incline in weekly T-bill yields and foreign selling. The main index advanced notably by 56.26 points or +0.77% to end at 7,366.31 whilst S&P SL 20 index gained 10.39 points (+0.26%) to end at 4,083.02.

Treasury yields inclined for sixth consecutive session as 12 month 6 month yields inclined by 6bps and 7bps to 6.54% and 6.50% while 3 month T-bill was not traded today. Central Bank offered LKR 56bn worth of T-bills and it was decided to accept LKR 21bn.

Today’s gains were driven by price advancements in counters such as Commercial Credit & Finance (closed at LKR 74.90, +9.3%), Carson Cumberbatch (closed at LKR 404.00, +2%) and Cargills (closed at LKR 157.00, +4.7%). Out of 20 counters in S&P SL index, 15 counters inclined whilst 5 counters closed with negative returns.

Daily market turnover reached a one week high of LKR 2.4bn underpinned by numerous crossings recorded in Lanka IOC (3mn shares at LKR 32.40 per share), Dialog Axiata (2.6mn shares at LKR 11.00 per share), John Keells Holdings (1.5mn shares at a price range of LKR 189.50-191.10), People’s Leasing & Finance (1mn shares LKR 24.50 per share), Textured Jersey (1mn shares at LKR 30.30 per share), Distilleries (0.5mn shares at LKR 290.00 per share), Hemas Holdings (0.3mn shares at LKR 97.20 per share), Seylan Bank (0.2mn shares at LKR 108.00 per share), Hatton National Bank (0.1mn shares at LKR 221.00 per share) and Lion Brewery Ceylon (0.03mn shares at LKR 640.00 per share). Total crossings represented
30% of the market turnover.

Further, John Keells Holdings positioned at the top of the turnover list with LKR 336mn followed by Lanka IOC (LKR 279mn), Distilleries (LKR 201mn) and Dialog Axiata (LKR 132mn).

Poultry sector counters namely, Ceylon Grain Elevators (+9.3%), Three Acre Farms (+9.3%) and Bairaha Farms (+6.8%) were among heavily traded counters for the session. Further Lanka IOC attracted investor interest subsequent to the first & final dividend announcement of LKR 1.00 per share. Despite the decline in earnings (-86%YoY) in June quarter, the counter advanced to LKR 35.50, +5.7%, but closed at LKR 34.50, +2.7%.

Market breadth was positive with 166 stocks rising 59 stocks declining while 41 counters remained unchanged. 24 counters advanced to 52wk high prices while only Blue Diamonds Jewellery non-voting (LKR 0.50, -16.7%) declined to 52wk low price.