Colombo Stock market wrapped the weekly operations on positive note where ASI closed on 38 month high level. Core index bagged 42.33 index points or 0.61% to close at 7,034.09 while 20-scrip S&P SL index gained 26.64 index points or 0.69% to end at 3,872.51. Price appreciations in counters such as Ceylon Tobacco (closed at LKR 1,199.00, +1.5%), Nestle Lanka (closed at LKR 2,148.00, +2.3%) & Commercial Bank (LKR 148.00, +1.3%) contributed favorably to the index performance.

Daily market turnover reached LKR 1.1bn supported by several crossings recorded in Commercial Bank (0.7mn shares at 147.00-148.00) & Access Engineering (3mn shares at LKR 27.00). Aggregate value of crossings represented 16% of the total turnover.

Accordingly, Commercial Bank topped the turnover list with LKR 118mn followed by Seylan Bank non-voting (LKR 116mn) & Access Engineering (LKR 114mn).

Out of 270 counters, 130 counters advanced, 87 counters slipped while 53 counters remained unvaried. Cash map improved to 59% from 54%. During the session, 23 counters reached 52wk high prices while 2 counters touched 52wk low price levels.

Sanasa Development Bank, MTD Walkers & Seylan Bank non-voting attracted heavy investor preference during the day. Further penny counters such Lanka Century Investments warrant 0006, Blue Diamonds, Sierra Cables were among heavily traded counters.

Subsequent to the dividend announcement of Lee Hedges, counter reached to 52wk high price of LKR 400.00 and closed at LKR 393.10, (+3.2%).

Further, Ceylon Hotels Corporation announced that the company has entered into an agreement with Zinc Hospitality Lanka (Pvt) Ltd, the hospitality arm of the multinational conglomerate Cinnovation/CG Group. Zinc Hospitality Lanka (Pvt) Ltd will invest LKR 250mn for 50% equity of the Ceylon Holidays Holdings (Pvt) Ltd (Joint Venture), which is currently a fully owned subsidiary of Ceylon Hotels Corporation.

Foreign investors were net buyers with a net inflow of LKR 101mn worth of equities. Foreign participation was 10%. Net foreign inflows were seen in counters such as Commercial Bank (LKR 60mn), John Keells Holdings (LKR 41mn), Nations Trust (LKR 9mn) while net outflow was mainly seen in Lanka IOC (LKR 8mn).

Moreover, as per the Colombo Consumers’ Price index (CCPI) released today by the statistics department, the inflation dropped to 3.5% in August (3.6% in May) whereas annual average inflation stood at 4.5% (4.7% in May).

Lanka Securities Research