Colombo equities welcomed the political switch positively on Friday as main index crossed 7,600 mark for the first time since March 2011. Colombo bourse managed to gain 92 points within ten minutes, recording one of the strongest openings in the recent past. The index reached a high of 7,614.13 (116.53 points, +1.6%) before closing at 7,605.79 with an increase of 108.19 points or +1.4% and S&P SL 20 index gained 86.53 points or +2.1% to end at 4,272.50.

The market rallied impressively around the election recording 318.20 points (+4.4%) of gains during last seven consecutive sessions.

Daily market turnover reached a two week high of LKR 3.7bn. Several crossings were recorded in Dialog Axiata (14mn shares at LKR 13.50-13.80 per share), Asiri Hospital Holdings (2mn shares at LKR 22.50 per share), Hayleys (1mn shares at LKR 340.00 per share), Seylan Bank non-voting (0.8mn shares at LKR 63.50 per share), Commercial Bank (0.7mn shares at LKR 186.00-190.00 per share) and DFCC Bank (0.1mn shares at LKR 232.00 per share). Aggregate value of shares represented 21% of the market turnover.

Hayleys was positioned at the top of the turnover list with LKR 341mn followed by Access Engineering (LKR 319mn) and Seylan Bank non-voting (LKR 230mn).

Further shares of Access Engineering, Union Bank, Sierra Cables and Piramal Glass were traded heavily during the session.

Gainers surpassed the losers 183 to 43 while 41 equities remained unchanged. 43 counters touched the 52wk high price levels while only 04 counters reached 52wk low price levels. Cash map was 58%. Notable price appreciations were witnessed in Commercial Bank (closed at LKR 188.00, +3.5%), Distilleries (closed at LKR 235.00, +7.8%) and Aitken Spence (closed at LKR 115.90, +7.3%).

Out of 20 shares in S&P SL 20 index 16 counters were advanced, 03 counters slipped and only Lion Brewery remained unchanged. Mainly counters such as Distilleries, Aitken Spence and Carson Cumberbatch appreciated during the session.
Foreign investors were net buyers with net inflow of LKR 54mn. Foreign participation was 16%. Net foreign inflows were seen in counters such as Commercial Bank (LKR 127mn), Access Engineering (LKR 91mn), Asiri Hospitals Holdings (LKR 52mn) while net foreign outflow was mainly seen in Dialog Axiata (LKR 59mn).

During the week the core index gained 257.40 points or 3.5% while S&P SL 20 index increased by 162.20 points or 3.9%.

For the week, foreign investors were net sellers with a net outflow of LKR 411mn. Weekly net foreign participation was at 16%. Weekly net foreign outflows were seen in John Keells Holdings (LKR 503mn), Hatton National Bank (LKR 78mn) whereas net foreign inflow was mainly seen in Commercial Bank (LKR 204mn).

Moreover Paragon Ceylon (+33%), Piramal Glass (+18%) emerged as the top gainer of the week while Ascot Holdings (-36%) emerged as the top loser subsequent to the rights issue.

Access Engineering positioned at the top of the contribution list of the weekly turnover with LKR 850mn followed by John Keells Holdings (LKR 719mn) and Seylan bank non-voting (LKR 586mn).

Meanwhile, Arpico Insurance Limited announced that the shares of initial public offering would be listed on the Diri Savi Board on 16th January 2015.

Consequently the political changeover the Governor of the Central Bank of Sri Lanka, Mr. Ajith Nivard Cabraal informed his resignation from the post. Accordingly, the new president may appoint a the new governor in due course.

Further, The Lanka Hospital Corporation informed that Mr. Gotabaya Rajapaksa, the Chairman and Mrs. Roshini Cabraal, Deputy Chairperson have tendered their resignation from the directorate of the company with immediate effect.

Siyapatha Finance made an announcement to CSE informing that the name of the company has been changed as Siyapatha Finance PLC subsequent to the listing.

First Capital Treasuries Limited informed that they have obtained the approval from CSE for listing 5mn (LKR 5bn) rated, subordinated, unsecured and redeemable debentures. The issue will be opened on 27th January for subscriptions and the prospectus will be delivered on 16th January 2015.

Lanka Securities Research