Colombo stock market managed to retain the positive momentum gained on last session and ASI closed at 38 month high. Both indices posted favorable gains amid strong foreign participation during the session. Core index bagged 13.50 index points or 0.19% to end at 7,060.60 while 20-scrip S&P SL index gained 15.93 index points or 0.41% to close at 3,902.81. Price appreciations in counters such as Nestle Lanka (closed at LKR 2,090.00, +1.2%), Commercial Bank (LKR 151.90, +1.3%) & John Keells Hotels (LKR 16.30, +3.2%) contributed favorably to index performance.

Daily market turnover reached LKR 1.6bn supported by several off-the-floor dealings recorded in Ceylon Tobacco (0.2mn shares at LKR 1,200.00), John Keells Holdings (LKR 0.9mn shares at LKR 250.00), Nestle Lanka (0.1mn shares at LKR 2,100.00), Access Engineering (2.4mn shares at LKR 27.00), Aitken Spence (0.4mn shares at LKR 107.50) & Commercial Bank (0.2mn shares at LKR 150.00). Aggregate value of crossings represented 43% of the total turnover.

Gainers outweighed the losers 134 to 97 while 52 counters remained unchanged. Cash map declined to 52% from 56%. 33 counters touched 52wk high price levels.

Odel, Commercial Credit & Finance and Dunamis Capital attracted heavy investor preference during the session. Subsequent to the announcement regarding a MoU signed to purchase of 51% shares of the Chilaw Finance by Richard Pieris Arpico Finance Limited, Chilaw Finance counter reached 52wk high price of LKR 26.30 & closed at LKR 25.40 (-0.4%).

Further Lanka Aluminium Industries has decided to dispose the entirety of its shareholding in Classic Teas (Pvt) Ltd to Asian Tea Co. Pvt Ltd, India. Once the transaction is completed, company may receive LKR 76.77mn cash and will report a capital gain of LKR 2.77 per share.

Foreign investors were net buyers for the sixth consecutive day with net inflow of LKR 406mn worth of equities. Foreign participation was 46%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 231mn), Access Engineering (LKR 65mn) & Commercial Bank (LKR 39mn) while net outflow was mainly seen in Aitken Spence (LKR 25mn).

Lanka Securities Research