Colombo bourse end its weekly activities in the negative territory on profit taking where core index shed some of the hefty returns gained during the week. ASI slipped by 29.24 index points or 0.42% to close at 6,943.85 while 20-scrip S&P SL index declined by 7.79 index points or 0.20% to end at 3,820.98. Price declines in counters such as Ceylon Tobacco (closed at LKR 1,185.00, (-0.9%), John Keells Holdings (closed at LKR 238.00, -0.4%) and Union Bank (closed at LKR 20.90, -10.3%) negatively affected the index performance.

Out of 282 counters traded, 157 counters slipped, 79 counters gained and 46 counters remained unchanged. Cash map improved to 56% from 48%. 28 equities reached 52wk high prices while 2 counters touched 52wk low price levels.

As of Friday, approximately 64% of the listed companies have released their Apr-Jun 2014 interim financial statements and the aggregate earnings for the quarter have inclined by 16% to LKR 35bn.

Daily market turnover reached to LKR 2.9bn followed by numerous off-the-floor dealings recorded in counter such as John Keells Holdings (7.4mn shares at LKR 235.00-239.00), Commercial Bank (0.53mn shares at LKR 144.40), Lanka IOC (1.08mn shares at LKR 40.00), Nations Trust Bank (0.5mn shares at LKR 84.00), Hatton National Bank (0.224mn shares at LKR 169.90), Distilleries (0.14mn shares at LKR 209.90), National Development Bank (0.11mn shares at LKR 229.50) & Asiri Hospital Holdings (1.0mn shares at LKR 20.00). Aggregate value of crossings represented 69% of the total turnover.

Accordingly, John Keells Holdings topped the turnover with LKR 1.75bn followed by Union Bank (LKR 82mn) and Commercial Bank (LKR 80mn) respectively.

Subsequent to the announcement of private placement of Union Bank (at LKR 15.30) to TPGG’s Culture Financial Holdings Ltd (CFHL), the counter touched LKR 19.00 on panic selling but rose back to LKR 20.90 with the announcement of mandatory offer by CFHL. CFHL intends to make a mandatory offer to purchase 2% of existing shares of the Union Bank on the completion of the proposed private placement at a price of LKR 25.00 per share. Union Bank counter closed at LKR 20.90, (-10.3%).

Lanka Century Investments, Entrust Securities, PCH Holdings were among heavily traded counters.

Further Acme Printing & Packaging will issue approx. 25.6mn shares (01 for 01) by way of a right issue at a price of LKR 12.00. Funds will be utilized to address the working capital position of the company. The stock closed at LKR 15.10, (-5.6%).

F L C Holdings announced an interim dividend of LKR 0.05 per share. Counter closed at LKR 2.30, (+4.6%).

Foreign investors were net sellers with net outflow of LKR 893mn worth of equities. Foreign participation was 39%. Foreign net outflows were seen in counters such as John Keells Holdings (LKR 1bn), Nations Trust Bank (LKR 42mn), Asiri Hospital Holdings (LKR 16mn) while net inflow was mainly seen Hatton National Bank (LKR 48mn).

Lanka Securities Research