Colombo stock market wrapped the weekly operations in greener territory on Friday as investors continued the previous day’s momentum. Benchmark index advanced for the second consecutive day to end at 6,382.24, increase of 32.53 index points or 0.51% while S&P SL20 index gained 21.87 index points (+0.66%) to close at 3,315.36.

Large caps pushed index forward where price gains were recorded in Commercial Bank (closed at LKR 130.00, +2.4%), John Keells Holdings (closed at LKR 158.50, +1.1%) and Ceylon Tobacco (closed at LKR 970.00, +0.8%).

Despite the index gain, daily market turnover was LKR 631mn. Seven crossings recorded today grabbed 42% of the total turnover. With the single off-the-floor dealing in Renuka Agri Foods (34.8mn shares at LKR 4.00), the counter capped the contributor list with a turnover of LKR 140mn. According to the announcement, Renuka Foods has acquired the shares and increased its stake to 56.3% of the issued capital.

Ceylon Tobacco (LKR 83mn), John Keells Holdings (LKR 53mn) and Ceylon Grain Elevators (LKR 39mn) were among top contributors to the turnover. Further, several crossings were seen in Ceylon Tobacco (0.08mn shares at LKR 967.00), John Keells Holdings (0.2mn shares at LKR 159.50) and Anilana Hotels & Properties (5.7mn shares at LKR 3.50).

Subsequent to the profit growth in Bairaha Farms for 3QFY16, counter increased by 1.9% to closed at LKR 176.00. Further, two other poultry segment counters, Three Acre Farms and Ceylon Grain Elevators saw high investor activity and counters closed higher in today’s session.

Meanwhile, textile manufacturing companies namely, Textured Jersey and Hayleys Fabrics grabbed the attention of retail investors. Both counters inclined by more than 3% during the session to close at LKR 32.50, +4.8% and LKR 19.70, +3.1% respectively. Moreover, Access Engineering, John Keells Holdings and JKH warrant 0023 were among heavily traded counters.

Gainers outweighed the losers where 141 advanced, 46 slipped while 54 remained unchanged. Cash map dipped from 96% to 48%. 11 counters, including high caps such as DFCC Bank (LKR 150.00) and Sri Lanka Telecom (LKR 40.00), declined to 52wk low price levels.

Foreign investors closed the session on selling side with a net foreign outflow of LKR 158mn. Foreign participation was 36%. Net foreign outflows were seen in Renuka Agri Foods (LKR 139mn), Ceylon Grain Elevators (LKR 9mn), Tokyo Cement (LKR 9mn) while net foreign inflow was mainly seen in Textured Jersey (LKR 9mn).

During the week, main index shed 63.96 index points or 0.99% while S&P SL 20 index declined by 24.77 index points (-0.74%). Ceylon Cold Stores (+6%), Hemas Holdings (+5%) and Ceylon Grain Elevators (+4%) were among the top gainers of the week, while Brown & Company (-12%), Browns Hydro Power (-9%), and Anilana Hotels & Properties (-9%) were among the top losers.

The average weekly turnover dipped by 22% to LKR 760mn. John Keells Holdings topped the weekly turnover list with LKR 791mn followed by Ceylon Hotel Corporation (LKR 316mn) & Renuka Agri Foods (LKR 142mn).

The foreign investors were net sellers during the week recording a net foreign outflow of LKR 64mn. Foreign activity was at 27%. Top net outflows were reported in Renuka Agri Foods (LKR 139mn), John Keells Holdings (LKR 64mn) and Commercial Bank (LKR 61mn) while top net inflows were mainly seen in Hatton National Bank non-voting (LKR 42mn) and Ceylon Cold Strores (LKR 37mn). Subsequent to this week’s net foreign outflow, year-to-date net foreign outflow increased to LKR 2.3bn.

Lanka Securities Research