Colombo bourse ended the sluggish week with another flat close on Friday ahead of the monthly monetary policy review. The indices are going through a consolidation phase and most of the investors are sticking to the sidelines amid mixed signals on the outlook for the economy.

Benchmark ASI closed at 7,110.80 with a drop of 4.03 points or 0.1% while the S&P SL 20 index lost 2.30 points or 0.1% to close at 3,889.52. Among the blue-chip losers, the most noticeable were Ceylon Tobacco (LKR 969.90,-1%), Peoples Leasing Company (LKR 22.00,-4%) and Lanka Orix Finance Company (LKR 4.10,-2%).

The lack of clear direction was evident in today’s session as well with gainers and losers remaining equally divided at 104 to 91 while 56 counters remained unchanged. The cash map remained flat at 52%. Four counters touched 52 week high prices during the session while 13 dropped to 52 week low prices.

Foreign purchases drove the market turnover to LKR 1.1bn led by negotiated deals in Nations Trust Bank (1.5mn shares at LKR 100.00), Peoples Leasing (6.4mn shares at LKR 22.00-22.80), Hatton National Bank (0.6mn shares at LKR 216.50-217.00), Hemas Holdings (1mn shares at LKR 89.00) and Chevron Lubricants (0.1mn shares at LKR 380.00). The crossings accounted for hefty 49% of the total turnover. Accordingly, Peoples Leasing (LKR 161mn), Hemas Holdings (LKR 150mn) and Nations Trust Bank (LKR 150mn) were the top contributors to the turnover.

Sinhaputhra Finance voting and preference shares were the favorites among the retail investors today. Both counters closed with 24% gain at LKR 22.60 and LKR 12.80 respectively. With the looming subdivision, Bimputh Finance sustained investor interest and the counter touched a 52 week high of LKR 169.00 before closing at LKR 134.00 with a drop of 13%.

John Keells Holdings warrant 22 continued to lose ground and closed at LKR 8.80 (-20%), day prior to its cut-off date. However, the John Keells Holdings voting share closed at LKR 175.00 with a gain of 0.6%.
Foreign investors bought shares worth of LKR 317mn on net basis and foreign participation improved to 45% of the market activity. Today’s top net inflows were seen in Nations Trust Bank (LKR 150mn), Hemas Holdings (LKR 136mn) and Hatton National Bank (LKR 53mn) while top net outflow was seen in Peoples Leasing (LKR 76mn).

Colombo equities ended little changed this week with ASI and S&P index advancing by mere 0.04%. Bimputh Lanka (+33%), Sinhaputhra Finance (+24%) and Standard Capital (+21%) were among the top gainers of the week while Agalawatte Plantations (-13%), Udupussellawa Plantations (-11%) and Serendib Hotels – nonvoting (-11%) were among the top losers.

The average weekly turnover improved 28% to LKR 836mn backed by foreign purchases. The net foreign inflow during the week amounted to LKR 499mn and the foreign activity accounted for 39% of the market turnover. John Keells Holdings topped the weekly turnover list with LKR 550mn followed by Hatton National Bank (LKR 279mn) and Peoples Leasing (LKR 206mn).

Lanka Securities Research