Lanka Securities Market Round up 12 August 2015

Colombo bourse closed on a mixed note amid the increase in treasury yields for the seventh consecutive week. Main index advanced to 7,490 mark in the first half of the trading session but failed to continue the optimistic momentum as investors booked profits on selected stocks.

All Share index bagged 12.98 index points (+0.17%) to end at 7,471.90 while 20-scrip S&P marginally dipped by 1.40 index points or 0.03% to end at 4,152.75.

Premier blue-chip, Nestle Lanka advanced to LKR 2,125.00 (+5.2%) supported by the 2nd quarter profit growth of 33%, and drove the index performance to the greener territory. Further, Dialog Axiata (closed at LKR 11.90, +2.6%) and CT Holdings (closed at LKR 146.90,+4.9%) contributed positively to the index performance. However, price decline in John Keells Holdings (closed at LKR 193.00, -0.6%), Distilleries (closed at LKR 308.00, -0.7%) and Ceylon Tobacco (closed at LKR 950.00, -0.5%) dragged index performance to the red zone.

Daily market turnover was LKR 2.1bn. Commercial Bank topped the turnover with LKR 593mn followed by Textured Jersey (LKR 112mn) and HDFC Bank (LKR 111mn). Several crossings were recorded in HDFC Bank (0.7mn shares at LKR 73.00), Commercial Bank (0.3mn shares at LKR 173.00), John Keells Holdings (0.3mn shares at LKR 190.00) and Nestle Lanka (0.02mn shares at 2,100.00) and crossings accounted for 10% of the total turnover.

Reflecting a neutral market session, 114 advanced, 103 slipped while 47 counters remained unchanged. Cash map skidded to 36% from 59%.

Following the news articles of possibility of winning GSP+ back in next few months, investors gathered around Textured Jersey and Hayleys Fabric. Textured Jersey advanced to 52wk high price of LKR 32.40 but closed below at LKR 31.80 (+2.6%) while Hayleys Fabric closed with marginal gain of 0.5% to LKR 19.40. Meanwhile, HDFC Bank, Lanka IOC and HVA Foods witnessed heavy trading activities.

Poultry counters such as Three Acre Farms (LKR 94.50, +4.4%), Bairaha Farms (LKR 166.80, +4.3%) and Ceylon Grain Elevators (LKR 73.70, +5.1%) continued attract investors.

Union Assurance counter advanced to LKR 180.00 (+2.9%) following the release of earnings report which showed a profit growth of 183% during the 2nd quarter. Further, Finlays Colombo (LKR 294.90, +9.2%), Chemanex (LKR 81.50, +4.5%), Central Industries (LKR 99.90, +1.8%) and Merchant Bank of Sri Lanka (LKR 19.00, +2.7%) closed with gains supported by positive earnings reports.