Lanka Securities Market Round up 3 September 2015

Colombo stock market drifted sideways on Thursday to record mixed returns with low turnover and volume. Benchmark index dipped to 7,239 but gained ground to close at 7,245.50, up by 5.11 index points or 0.07%. 20-scrip S&P SL index slightly declined to end at 3,978.84, down by 1.06 index points (-0.03%).

Price advancement in high caps such as Ceylon Tobacco (closed at LKR 980.00, +1.0%), Aitken Spence (closed at LKR 97.90, +1.9%) pinned index performance to the greener territory while declines in People’s Leasing & Finance (closed at LKR 24.20, -1.2%) and Distilleries (closed at LKR 280.60, -0.5%) dragged S&P SL20 index performance to the red zone.

Daily market turnover was LKR 567mn. Single crossing of approx. 0.8mn shares of
Commercial Bank at a price of LKR 170.00 lifted Commercial Bank to the top turnover position with LKR 157mn. Sampath Bank (LKR 61mn), John Keells Holdings (LKR 57mn) and Asiri Hospitals Holdings (LKR 44mn) were next contributor to the turnover respectively.

Two crossings were recorded in Hatton National Bank (0.1mn shares at LKR 220.00) and Asiri Hospital Holdings (1.0mn shares at LKR 21.80). Aggregate value of crossings represented 32% of the total turnover.

Market breadth was positive where out of the 239 counters traded, 96 advanced, 83 declined and 60 remained unchanged. Cash map marginally inclined from 37% to 41%. 11 counters touched 52wk low prices while only Taprobane Holdings (LKR 5.40), Union Chemicals Lanka (LKR 600.00) and Vidullanka (LKR 11.00) managed to reach 52wk high price levels.

Subsequent to right issue announcement, Eden Hotel counter declined to LKR 19.50 but closed higher at LKR 20.00 (-11.11%). Meanwhile, John Keells Holdings warrant 0022, Textured Jersey Lanka, Lanka IOC witnessed heavy trading activity.

According to the corporate disclosure, Muvumbe Hydro Ltd, a subsidiary of Vidullanka has entered implementation agreement with the Ministry of Energy & Mineral Development of Uganda and developer financing agreement with KfW bank of Germany under the Lighting Africa program for the commercial operation of the Muvumbe Small Hydro Power Plant.

Foreign investors were net sellers with a net outflow of LKR 196mn. Foreign participation was 31%. Net foreign outflows were seen in Commercial Bank (LKR 127mn), John Keells Holdings (LKR 54mn), Sampath Bank (LKR 26mn) while net foreign inflow was mainly seen in Asiri Hospitals Holdings (LKR 39mn).