Colombo equities rallied for the fifth consecutive day with the backing of high cap counters. During the first two days of the month market inclined by 98.91 points (1.4%) while witnessing net foreign outflow of LKR 469mn.

ASI gained 57.97 index points or 0.79% to end at 7,351.05 while 20-scrip S&P SL index increased by 42.25 index points or 1.04% to close at 4,107.36. Price inclines in counters such as John Keells Holdings (closed at LKR 260.20, +1.8%), DFCC Bank (closed at LKR 216.00, +5.0%), and Commercial Leasing & Finance (closed at LKR 4.70, + 6.8%) contributed positively to the index performance.

Daily market turnover was LKR 2.5bn. John Keells Holdings topped the turnover list with LKR 406mn followed by Arpico Finance (LKR 373mn) & Hatton National Bank (LKR 123mn). Several crossings were recorded in Arpico Finance (2.2mn shares at LKR 166.00), People’s Leasing (1.0mn shares at LKR 21.00), Hatton National Bank (0.3mn shares at LKR 194.00) & Hatton National Bank non-voting (0.4mn shares at LKR 149.00). Aggregate value of crossings accounted for 20% of the total turnover.

Alliance Finance announced that the company disposed its entire shareholding in Arpico Finance at LKR 166.00 to Associate Motor Finance.

Access Engineering, Singer Finance & People’s Leasing & Finance attracted heavy investor preference and all three counters reached 52wk high price level.

Gainers outweighed the losers 143 to 80 while 59 counters remained unchanged. Cash map declined to 56% from 62%. 44 counters reached 52wk high prices while 4 counters touched 52wk low price levels.

Subsequent to the private placement, the newly issued shares of Union Bank was listed today. The counter closed at LKR 22.90, -0.4%.

Foreign investors were net buyers for the second consecutive day with net inflow of LKR 394mn. Foreign participation was 23%. Net foreign inflows were seen in John Keells Holdings (LKR 152mn), Hatton National Bank non-voting (LKR 52mn), Hatton National Bank (LKR 45mn) while net foreign outflow was mainly seen in Access Engineering (LKR 24mn).

Moreover, Bank of Ceylon and People’s Leasing & Finance debentures will be listed on Colombo Bourse tomorrow.

Please note Colombo Bourse will be closed on 06^th October 2014 (next Monday) due to the day being declared as a public and special bank holiday by Ministry of Public Administration & Home Affairs.

Lanka Securities Research