Lanka securities Insight 7 August 2015

Colombo bourse pared early gains on Monday and closed on a mixed note. The ASI relinquished most of a 26-point gain, ending 4.54 points or 0.1% higher at 7,336.59. S&P SL 20 index closed at 4,088.69 with a drop of 19.28 points or 0.5%. The market turnover was LKR 984mn. Royal Ceramics attracted investor interest after its subsidiaries posted notable profits and the counter was the top contributor to the
turnover with LKR 99mn followed by Commercial Bank (LKR 75mn), Lanka Century Investments (LKR 53mn) and Laugfs Gas – nonvoting (LKR 45mn). Trades were led by Ceylon Grain Elevators, Pan Asia Bank, HVA Foods and Bimputh Finance. Foreign investors were net sellers with a net outflow of LKR 97mn. Foreign participation was relatively high at 21%.

Equities fell on Tuesday, snapping the four-day winning streak as profit taking halted the upward drive on the Colombo Bourse. In the opening hours, main index advanced to 7,345 mark but failed to continue the positive momentum and closed 26.54 index points or 0.36% below at 7,310.05 while 20-scrip S&P SL index declined by 16.06 index points (-0.39%) to end at 4,072.63. Daily market turnover was LKR 1.6bn. John Keells Holdings topped the turnover list with LKR 377mn followed by Hemas Holdings (LKR 121mn), Hayleys Fabric (LKR 88mn) and Royal Ceramic (LKR 55mn). Foreign investors were net sellers for the third consecutive day with a net outflow of LKR 158mn. Foreign participation was 30%.

Colombo equities continued the upswing on Wednesday after the break in Tuesday’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. Daily market turnover was a one week high of LKR 2.4bn. 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, Three Acre Farms and Bairaha Farms were among heavily traded counters for the session. Foreign investors remained as net sellers for the fourth consecutive session, reducing positions worth
LKR 538mn. The foreign participation was 32%