Colombo equities brushed off losses made on previous session as blue chips helped lead the market higher on Tuesday. After the hesitant start, the ASI recouped and touched a high of 7,275.45 before settling at 7,261.07 with a gain of 13.84 index points or 0.19%. S&P SL 20 index edged high by 10.22 index points or 0.25% to close at 4,077.89.

Today’s top blue-chip performers, Ceylon Tobacco (LKR 916.00,+1.8%), John Keells Holdings (LKR 195.00, +0.6%) and Aitken Spence (LKR 100.00,+2.0%), supported the index to close higher. After a prolonged period of weakness, Ceylon Tobacco gained investor interest today as it declared the second interim dividend of LKR 24.00 per share.

The market turnover was LKR 1.1bn. Only single crossing was seen in session, where 51,883 shares of Chevron Lubricants changed hands at LKR 407.00 per share. The crossing accounted for mere 2% of the total turnover. Premier blue-chip, John Keells Holdings, led the turnover list with LKR 255mn. Further, Overseas Realty (LKR 75mn), Laugfs Gas-nonvoting (LKR 52mn), John Keells Holdings – warrant 22 (LKR 37mn) and Chevron Lubricants (LKR 28mn) made notable contributions to the turnover.

The market breadth was positive, as winners topped losers by 129 to 82 in active trading while 48 counters remained unchanged. The cash map declined from 47% to 44%. 12 counters touched 52 week highs in todays’ session, among these were mostly midcaps such as Ceylon Grain Elevators, CIC Holdings, Textured Jersey, Three Acre Farms and United Motors. Only two counters, namely Ceylon Leather Products – warrant 14 and Marawila Resorts, touched 52 week low today. Shares of Marawila Resorts touched a low of LKR 3.00 subsequent to the listing of shares from the rights issue but closed higher at LKR 3.20, +3.2%.

John Keells Holdings warrants led the trades while HVA foods, Grain Elevators and Overseas Realty were also heavily traded in todays’ session.
Investors reacted to the mixed corporate earnings reports and Alumex declined by 5.1% subsequent to the 11% drop in quarter earnings while Keells Foods extended its rally to touch a fresh 52 week high of LKR 155.50,+3.7% as the company reported a 86% growth in its June quarter profits.

Foreign investors were net sellers of LKR 213mn worth of equities and foreign activity represented 23% of the market turnover. Net foreign outflows were mainly seen in John Keells Holdings (LKR 193mn), Laugfs – nonvoting (LKR 43mn) and Hemas Holdings (LKR 9mn) while top net inflows were seen in Sampath Bank (LKR 16mn).

In government debt markets, treasury yields inclined for fifth consecutive session. 3 month and 6 month yields inclined by 3bps and 5bps to 6.28% and 6.43% while 12m yield inclined by 9bps to 6.48%. Central Bank offered LKR 19bn worth of T-bills which was oversubscribed by 3.1x. It was decided to accept LKR 26.5bn.

Lanka Securities Research