Lanka Securities Market Round up 20 August 2015

iscussions among the two major political parties to form a national government. Sri Lanka Freedom Party today decided to support ruling United National Party to build a stable government for a 2 year period. Bench Mark All Share Price index lost 48.96 points or -0.65% to end at one week low of 7,449.82 whilst S&P SL 20 index lost 26.72 (-0.64%) to end at 4,137.59.

The losses were mainly driven by price declines in counters such as Dialog Axiata (closed at LKR 11.60, -2.5%), C.T Holdings (closed at LKR 150.10, -3.1%) and Janashakthi Insurance (closed at LKR 20.20, -12.2%). Janashakthi insurance announced a right issue today, with a proportion of 01 for 02 at LKR 18.50 per share. The company plans to utilize the funds for the future expansion of the insurance business.

Daily market turnover was LKR 1.2bn. Distilleries emerged as the top contributor to the market turnover with LKR 319mn supported by two crossings where 0.3mn shares changed hands at LKR 300.00 per share. Hatton National Bank (LKR 66mn), Bairaha Farms (LKR 65mn) and Sampath Bank (LKR 49mn) recorded next best contributions to the turnover. Another crossing was recorded in Central Finance (0.08mn shares at LKR 280.00 per share). Total off-the-floor deals accounted for 8% of the market turnover.

Reflecting the bearish investor sentiments, losers surpassed the gainers 164 to 51 while 40 counters remained unchanged. Central Industries (LKR 114.30), Piramal Glass (LKR 7.10), Central Finance (LKR 280.00) and Keells Food Products (LKR 187.00) recorded fresh 52wk high prices while Marawila Resorts (LKR 3.00), Blue Diamond non-voting (LKR 0.50), Adam Investments (LKR 2.60) and FLC Holdings (LKR 1.40) dropped to 52wk low prices. Cash map declined to 35% from 54%.

Access Engineering led the trades followed by Janashakthi Holdings, Bairaha Farms, Ceylon Grain Elevators, Sierra Cables and Lanka IOC.

Foreign investors turned to be net buyers with a net inflow of LKR 131mn after two
consecutive sessions of foreign outflows. Foreign participation was 28%. Net foreign inflows were seen in Distilleries (LKR 129mn), Sampath Bank (LKR 24mn), and Lanka Hospitals (LKR 13mn) while net foreign outflows were mainly seen in Hatton National Bank (LKR 34mn) and Laugfs Gas non-voting (LKR 28mn).

Further, script dividend shares of Ceylon Guardian Investment Trust were listed today. Subsequent to the listing, the counter declined to LKR 193.00, -1% but recovered to close at LKR 194.00, -0.5%.