Lanka Securities Market Round up 27 August 2015

Colombo stocks stretched gains for the second consecutive day on Thursday despite the overseas investors continued to stand on the selling side. All share index closed at 7,273.14, up by 33.04 index points or 0.46% while S&P SL20 index touched 4,000 mark but closed lower at 3,991.16, up by 22.59 index points (+0.57%).

Index advancement was supported by high cap counters such as John Keells Holdings (closed at LKR 179.30, +2.4%), Dialog Axiata (closed at LKR 11.60, +3.6%), People’s Leasing & Finance (closed at LKR 25.30, +3.7%) and Lanka IOC (closed at LKR 41.00, +6.2%).

Daily market turnover lifted to LKR 1.4bn by hefty crossings which accounted for 63% of the total turnover. John Keells Holdings emerged as the top contributor to the turnover with LKR 528mn supported by several off-the-floor dealings of 2.6mn shares at LKR 176.20-177.40. Hatton National Bank (LKR 169mn), Commercial Bank (LKR 166mn) and Lanka IOC (LKR 71mn) were next best contributors.

Several crossings were recorded in Commercial Bank (0.9mn shares at LKR 169.00), Hatton National Bank (0.7mn shares at LKR 217.00), Tokyo Cement non-voting (LKR 1.2mn shares atLKR 42.00), Dialog Axiata (4.4mn shares at LKR 11.40) and Nestle Lanka (0.02mn shares at LKR 2,050.00).

Sharp increase in cash map from 16% to 46% reflected the optimistic investor sentiment. Out of the 247 counters, 145 advanced, 56 dipped and 46 remained unchanged. Tess Agro nonvoting (LKR 1.60), CT Land and Development (LKR 56.00) and Laxapana Batteries (LKR 8.20) managed to reach 52wk high prices while 12 counters touched 52wk low prices.

Lanka IOC, Laxapana Batteries, Ceylon Grain Elevators attracted high investor preference during the trading session. Along with John Keells Holdings voting share, warrant 0023 closed higher at LKR 37.50 (+2.7%) but warrant 0022 counter declined to LKR 20.70 (-1.4%).

During the trading session, Finlays Colombo declared an interim dividend of LKR 1.50 per share and counter reached to LKR 278.00 (+1.5%).

Foreign investors were net sellers for the fifth consecutive day with a net outflow of LKR 456mn. Foreign participation was 49%. Net foreign outflows were seen in John Keells Holdings (LKR 319m), Commercial Bank (LKR 154mn), Dialog Axiata (LKR 51mn) while net foreign inflow was mainly seen in Nestle Lanka (LKR 10mn).