Colombo equities closed on Thursday in positive territory as core index gained 18.95 points or 0.27% to end at 6,973.09 while S&P SL 20 index gained 8.51 points or 0.22% to end at 3,828.77. All share price index touched the 7000 level today and recorded an intraday high of 7,018.72.  Declining interest rates and healthy corporate earnings boosted the market performance during the day.

The gains were mainly led by price progression in counters such as Ceylon Tobacco (closed at LKR 1,250.00, +8.3%), Ceylon Cold Stores (closed at LKR 248.00, +10.4%) and DFCC Bank (closed at LKR 182.00, +2.7%).

Daily market turnover reached LKR 2bn today underpinned by negotiated deals recorded in Aitken Spence (0.2mn shares at LKR 109.00 per share), Commercial Bank (1mn shares at LKR 145.00 per share), DFCC Bank (0.1mn shares at LKR 180.00 per share), Ceylon Cold Store (0.5mn shares at LKR 245.00 per share), Hemas Holdings (2.8mn shares at LKR 52.00 per share) and Access Engineering (1mn shares at LKR 27.50 per share). Aggregate value of crossings represented 24% of the market turnover.

John Keells Holdings emerged as the top contributor to the market turnover with LKR 262mn followed by Ceylon Cold Stores (LKR 193mn) and Hemas Holdings (LKR 161mn).

Gainers offset losers 133 to 82, while 56 counters remained unchanged. Cash map dropped to 48% from 57%. 52 counters reached 52wk high prices while shares of Lucky Lanka Milk Processing company voting & non-voting and Asia Capital touched 52wk low price levels.

Meanwhile Lanka Century Investments, First Capital and Commercial Credit attracted heavy investor interest during the session.

Foreign investors were net buyers with a net inflow of LKR 453mn worth of equities. Foreign participation was 24%. Net foreign inflows were seen in John Keells Holdings (LKR 236mn), Ceylon Cold Stores (LKR 186mn), Hemas Holdings (LKR 128mn) while net foreign outflow was mainly seen in Commercial Bank (LKR 71mn).

Union Bank announced that the bank will issue 742mn voting shares through private placement at LKR 15.30 per share to Culture Financial Holdings Ltd (CFHL)., a subsidiary of TPG group. Further the bank will issue 218mn warrants at LKR 0.30 to CFHL. Accordingly, CFHL can convert the warrants to shares within a period of 6 years, at a price of LKR 16.00 per share. Central Bank has given the approval to CFHL to acquire up to 75% in UBC and to reduce it to 15% in 15 years thereafter. Subsequent to the private placement CFHL intends to make a mandatory general offer to the UBC shareholders. UBC closed at LKR 23.20, -1.3%.

Further, Autodrome declared a final dividend of LKR 3.00 per share.

Lanka Securities Research