Colombo equities swung between gains and losses on Monday to start the weekly operations with flat returns. Benchmark ASI bagged 20.34 points in the morning session but failed to sustain the momentum in the latter part to close at 7,100.00 with a marginal gain of 3.94 points or 0.06%. S&P SL 20 index lost 3.58 points (-0.09%) to end at 3,816.22.

Price appreciations in counters such as Ceylon Tobacco (closed at LKR 960.00, +1%), Sri Lanka Telecom (closed at LKR 48.90, +3.8%) and Dialog Axiata (closed at LKR 11.20, +0.9%) contributed positively to the ASI performance while price declines in counters such as Nestle Lanka (closed at LKR 2,100.00, -1.1%) and National Development Bank (closed at LKR 217.00, -1.8%) affected adversely to the index performance.

Daily market turnover was LKR 988mn. Dialog Axiata topped the turnover list with LKR 205mn underpinned by a single crossing where 18mn shares changed hands at LKR 11.30 per share. Other crossings were recorded in Cargills Ceylon (0.3mn shares at LKR 179.00 per share) and Commercial Bank (0.3mn shares at LKR 157.50 per share). Total crossings accounted for 31% of the market turnover.

Further, Hayles Fabrics (LKR 100mn), Commercial Bank (LKR 95mn) and Lanka IOC (LKR 61mn) recorded next best contributions to the turnover.

Hayleys Fabric led the trades for the day recording more than 1,000 trades. Shares of Lanka IOC, Bimputh Finance, Ceylon Grain Elevators and Janashakthi Insurance also witnessed thick trades during the session.

Market momentum was relatively negative as 94 counters dropped, 91 counters rose while 62 counters remained unchanged. 08 counters recorded 52wk high prices while 15 counters declined to 52wk low prices. Cash map further declined from 50% to 47%.

Further, AIA Insurance and Janashakthi Insurance gained ground today subsequent to the acquisition that took place on 09th October 2015. AIA Insurance closed at LKR 325.00, +11.5% while Janashakthi Insurance closed at LKR 20.60, +3%.

Laugfs Gas (LGL) announced that the company has acquired 69% of the total issued quantity in Petredec Elpiji Limited, the third largest LPG down streaming operator in Bangladesh for a consideration of USD 18.75 million. Following the announcement both LGL voting and non-voting shares recorded gains as the voting share closed at LKR 44.40, +3.3% while the non-voting share closed at LKR 39.50, +2.1%.

Foreign investors continued to be net buyers with a net foreign inflow of LKR 246mn. Foreign participation inclined from 13% to 25%. Net foreign inflows were seen in Dialog Axiata (LKR 201mn), Cargills (LKR 53mn) and John Keells Holdings (LKR 14mn) while net foreign outflow was mainly seen in National Development Bank (LKR 8mn).

Lanka Securities Research