Colombo bourse continued the winning streak for the third day and closed the session with gains on a critical day for domestic politics. Accepting nominations for the August general election was closed today and major political parties handed over the much debated nominations lists to the election commissioner.

In today’s trading session ASI crossed 7,000 mark after five days and closed at 7,002.78 with a gain of 18.66 points (+0.3%) while S&P SL 20 index gained 11.17 points (+0.3%) to close at 3,916.44. Blue-chips drove the index to the positive territory where notable contributions were made by Cargills (closed at LKR 145.00, +7.3%), Dialog Axiata (closed at LKR 10.50, +1.9%) and Sri Lanka Telecom (closed at LKR 46.00, +3.6%).

Daily market turnover was LKR 531mn. Market breadth was positive with gainers outweighing losers 143 to 78 while 55 counters remain unchanged. Cash map improved from 66% to 56%. Nine counters touched 52 week low prices today while five counters reached 52 week high prices and among them were Vidullanka (LKR 9.40) and Kelani Cables (LKR 110.00) which continued their positive momentum to the new week.

Kegalle Plantations was the star performer of the day subsequent to its spectacular dividend of LKR 45.00 per share. Kegalle Plantations, the cash rich plantation among regional plantation companies held approximately LKR 2.5bn in short term investments by 31st March 2015 and through the dividend, the company will distribute approximately LKR 1.1bn to its shareholders. The counter reached a 52 week high of LKR 146.60 during the session but closed at LKR 140.00 with a gain of 47%. Subsequent to the dividend announcement, the share price of Richard Peiris & Co, the parent company of Kegalle Plantations, inclined to a high of LKR 8.60 but closed lower at LKR 7.90, +4%. Further interest were seen in related party companies such as Maskeliya Plantations (LKR 10.20,+4%), Namunukula Plantations (LKR 74.00,+12%), Richard Peiris Exports (LKR 148.50,+4%).

On the other hand, plantations companies gained ground for the second consecutive session and several plantation companies closed with notable returns but on low volume. Among these were Udupussellawa Plantations (LKR 31.40,+9%), Kelani Valley Plantations (LKR 66.90,+8%), Madulsima Plantations (LKR 10.20,+6%), Kotagala Plantations (LKR 25.00,+6%), Balangoda Plantations (LKR 21.00,+5%).

The government decision to reduce in LP gas price by LKR 100.00 did not have a significant impact on the share price of Laugfs Gas. The voting share declined by 1.2% to LKR 38.50 while non-voting share closed flat at LKR 35.10. Laugfs Gas was the top contributor to the turnover with LKR 104mn which was boosted through a transaction of 2.6mn at LKR 39.00.

Further Hatton National Bank made a notable contribution of LKR 88mn supported by a crossing of 0.29mn shares at LKR 210.00.

Apart from Kegalle Plantations and Richard Peiris & Co, shares of John Keells Holdings, Access Engineering and Sanasa Development Bank were among heavily traded counters.

Foreign investors continued to be net sellers for the ninth consecutive day with a net outflow of LKR 26mn. Foreign participation was 25%. Net foreign outflows were seen Hatton National Bank (LKR 19mn), Laugfs Gas non-voting (LKR 16mn) and Sierra Cables (LKR 14mn) while net foreign inflow was mainly seen in FLC Holdings (LKR 20mn).

Lanka Securities Research