Colombo stock market closed with positive returns on Wednesday, reflecting an optimistic market sentiment induced by the change in the constitution with the vast majority of the parliament. All share index end at 8 week high where main index advanced by 38.94 index points or 0.55% to end at 7,173.37 while 20-scrip S&P SL index bagged 22.18 index points (0.55%) to close at 4,048.44.

Price appreciation in blue chips such as Carson Cumberbatch (closed at LKR 420.00, +4.2%), Distilleries (closed at LKR 250.00, +2.0%) and Sri Lanka Telecom (closed at LKR 47.00, +1.7%) contributed positively to the index performance.

Daily market turnover was LKR 975mn. John Keells Holdings emerged as the top contributor to the turnover with LKR 173mn underpinned by two crossings of 0.4mn shares at LKR 207.00. Contribution from counter represented 18% of the turnover. Dipped Products and Seylan Bank non-voting were next best contributors the turnover with LKR 58mn and LKR 55mn respectively.

Further, several crossings were recorded in Commercial Bank (0.2mn shares at LKR 172.00) and Nestle Lanka (0.01mn shares at LKR 2,300.00). Aggregate value of crossings represented 16% of the total turnover.

Out of 251 counters, 159 advanced, 46 slipped while 46 counters remained unchanged. Cash map improved to 61% from 59%. 13 counters managed to reach 52wk high prices while only Expolanka and Singhe Hospitals touched 52wk low prices of LKR 8.50 and LKR 2.40 respectively.

Hemas Holdings rights attracted investor attention where counter advanced by 37% to close at LKR 3.70. Meanwhile both Seylan Bank voting and non-voting shares reached to 52wk high prices of LKR 107.00 and LKR 69.20 respectively. Seylan Bank voting share closed at LKR 105.50 (+2.4%) while non-voting share end at LKR 69.00 (+4.4%).

Softlogic Finance, Access Engineering and People’s Leasing & Finance were among heavily traded counters.

During the session, Piramal Glass declared first & final dividend of LKR 0.23 per share (DY-3.8%). Counter closed at LKR 6.00 (+1.7%). Further, Ramboda Falls announced an interim dividend of LKR 0.50 per share but the counter declined by 1.9% to LKR 30.40.

Manufacturing companies such as Dipped Products (LKR 154.50), ACL Cables (LKR 84.00), Swisstek (Ceylon) (LKR 57.80) and Kelani Tyres (LKR 85.00) reached 52wk high prices.

The Lighthouse Hotel declared a final dividend of LKR 2.00 per share (DY-3.6%) but counter witnessed no trades during the session.

Foreign investors were net buyers for the third consecutive day with a marginal net inflow of LKR 3mn. Foreign participation was 28%. Net foreign inflows were seen in John Keells Holdings (LKR 76mn), Sierra Cables (LKR 6mn), Vallibel Finance (LKR 3mn) while net foreign outflow was mainly seen in Hatton National Bank (LKR 20mn).

Lanka Securities Research