Colombo bourse ended with positive returns on Tuesday as benchmark All Share Price index gained 11.18 points or 0.15% to end at 7,266.20 while S&P SL 20 index gained 9.51 points (+0.24%) to end at 4,046.83.

Price advancements in counters such as Aitken Spence Hotel Holdings (closed at LKR 83.90, +6.2%), Ceylon Tea Services (closed at LKR 785.90, +9.2%) and Selinsing (closed at LKR 1,650.00, +10%) contributed favorably to the index performance.

Daily market turnover reached LKR 1.6bn supported by several crossings recorded in Seylan Bank (2.2mn shares at LKR 108.00 per share), Distilleries (0.6mn shares at LKR 292.00 per share), John Keells Holdings (0.2mn shares at LKR 201.50 per share) and Adam Investments (25.4mn shares at LKR 3.30 per share). Total crossings accounted for 34% of the total market turnover.

Seylan Bank positioned at the top of the turnover list with LKR 250mn underpinned by notable crossings. Distilleries (LKR 176mn), Adam Investments (LKR 86mn) and Sanasa Development Bank (LKR 86mn) recorded next best contributions to the turnover.

Gainers outweighed the losers 101 to 93 while 58 counters remained unchanged. 19 counters advanced to 52wk high prices while 07 counters dropped to 52wk low prices. Cash map declined to 52% from 67%.

Overseas Realty rights commenced trading today and emerged as the top gainer to close at LKR 5.50, +120%. The share started trading at LKR 3.00 but touched LKR 9.70 during the session.

Shares of Lanka IOC notably declined today to record a 52wk low price of LKR 33.30, -16.3% following to the negative earnings recorded in the March quarter. The company has reported a loss of LKR 1.1bn, -247%YoY. The counter closed at LKR 35.20, -11.6%.

Reflecting the positive earnings and dividend announcement Haycarb advanced during the session. The counter announced a Final dividend of LKR 4.00 per share yesterday, which translated to a dividend yield of 2.2%. Further the company recorded a profit growth of 18.3% in 4QFY15. In addition approximately 80 listed companies have released their March quarter earnings so far.

Furthermore Talawakelle Tea Estates declared a first & final dividend of LKR 3.00 per share (Dividend Yield 8.2%).

Meanwhile Madulsima Plantations announced a right issue with the proportion of 05 for 01 at a consideration of LKR 9.50 per share. Subsequent to the right issue the counter dropped to a 52wk low price of LKR 9.70 but closed at LKR 9.90, -8.3%.

Foreign investors were turned to be net buyers with a net foreign inflow of LKR 273mn. Foreign participation was 17%. Net foreign inflows were seen in Distilleries (LKR 136mn), Seylan Bank (LKR 32mn) and Tokyo Cement non-voting (LKR 28mn) while net foreign outflow was mainly seen in Lanka IOC (LKR 10mn). Subsequent to today’s inflows the year to date net foreign inflow passed the LKR 6bn mark.

Citrus Leisure announced that the fully owned subsidiary of Citrus Leisure, namely Citrus Silver Limited will enter into a lease agreement with George Stewart & Co., an affiliated company of Citrus Leisure to operate a City Hotel under the name of ‘The Stewart by Citrus’ for a period of 10 years. The hotel will be operating as an “Unclassified Boutique Hotel” Comprising of 50 rooms.

Lanka Securities Research