Colombo equities continued the positive momentum for the second consecutive session amid further drop in T-Bill rates. The main index started out with a negative tone in the morning session to record a drop of 27.29 points or -0.4%, but changed directions in the afternoon to end the market activities in green. The All Share Price index advanced by 18.53 points or +0.26% to end at 7,117.13. S&P SL 20 index marginally gained 3.18 points (+0.08%) to end at 4,029.61%.

Price appreciations in counters such as Ceylon Brewery (closed at LKR 900.00, +8%), Lanka Orix Leasing Company (closed at LKR 87.00, +7.4%), and Commercial Credit & Finance (closed at LKR 55.50, +5.3%) contributed favorably to the index performance.

Daily market turnover recorded a nearly one week high of LKR 1bn underpinned by several crossings recorded in Commercial Bank (2.1mn shares at LKR 172.50 per share), Distilleries (0.3mn shares at LKR 240.00 per share) and Nestle Lanka (0.01mn shares at LKR 2,300.00 per share). Total Crossings accounted for 45% of the market turnover.

Commercial Bank topped the turnover list with LKR 369mn which contributed 35% of the turnover. Distilleries (LKR 211mn) and Dipped Products (LKR 57mn) recorded next best contributions to the turnover.

Reflecting the optimistic sentiments, Out of 229 counters traded 103 advanced 71 declined and 55 counters remained unchanged. Cash map declined to 49% from 60%. 06 counters touched 52wk high prices while 06 counters declined to 52wk low prices.

Moreover shares of Swarnamahal Financial Services, Softlogic Finance and Commercial Credit & Finance were among heavily traded counters. Further Hayleys MGT and Textured Jersey attracted heavy investor preference amid the positive prospects of GSP+ scheme. Textured Jersey closed with a 52wk high price of LKR 26.90, +5.1%.

Foreign investors were net sellers after three consecutive days of net buying. Net foreign outflow was LKR 132mn while foreign participation was high at 57%. Net foreign outflows were seen in Distilleries (LKR 80mn), Laugfs Gas (LKR 18mn) and Hatton National Bank (LKR 15mn) while net foreign inflow was mainly seen in Swarnamahal Finance (LKR 7mn).

Meanwhile at today’s Treasury bill auction, T-Bill yields further dropped where 12M yield declined by 10bps to 6.50% while 3M yield declined by 7bps to 6.19% and 6M yield declined by 18bps to 6.35%. CBSL offered LKR 25bn worth of Treasury bills today and the auction was oversubscribed by 3.7 times with bids received amounting to LKR 91.5bn. It was decided to accept LKR 34.5bn.

Lanka Securities Research