Colombo shares recovered some lost ground on Thursday ending the three day losing streak. The main bourse advanced by 23.26 index points or -0.34% to end at 6,947.05 while S&P SL 20 index gained 20.34 points (+0.53%) to end at 3,870.71.

Blue chips gave the market momentum as heavy weight counters like John Keells Holdings (closed at LKR 179.00, +2.1%), Hatton National Bank (closed at LKR 207.90, +2.4%) and Asian Hotels & Properties (closed at LKR 65.80, +4.4%) inclined in today’s session. In addition both warrants of John Keells Holdings, Warrant 0022 (closed at LKR 18.70, +2.8%) and Warrant 0023 (closed at LKR 31.30, +3.3%) advanced during the session along with the main share.

Daily market turnover was LKR 1bn. The market turnover was boosted by the hefty crossings recorded in Dialog Axiata where 41.4mn shares changed hands at a price range of LKR 10.10-10.20. DIAL crossings accounted for 54% of the market turnover. Other crossings were recorded in Hemas Holdings (1.0mn shares at LKR 80.00 per share), John Keells Holdings (0.4mn shares at LKR 178.00 per share), Seylan Bank (0.5mn shares at LKR 100.00 per share) and National Development Bank (0.2mn shares at LKR 257.00 per share). Total crossings accounted for 63% of the total market turnover.

Dialog Axiata positioned at the top of the turnover list with LKR 557mn underpinned by the crossings. Further Hemas Holdings (LKR 84mn), John Keells Holdings (LKR 71mn) and Seylan Bank (LKR 51mn) recorded next best contributions to the turnover.

The market activity was positive with 129 stocks rising 65 stocks declining and 38 counters remained unchanged. Cash map further stepped down to 33% from 35%. Meanwhile 17 counters declined to 52wk low prices while only Vidullanka (LKR 9.30, +1.1%) and Industrial Asphalts (Ceylon) (LKR 380.00, +22.9%) reached 52wk high prices.

Anilana Hotels & Properties led the trades followed by Nation Lanka Finance, Dialog Axiata and Dankotuwa Porcelain.

Furthermore, most index heavy banks namely Hatton National Bank (+2.4%), Commercial Bank (+0.8%) and National Development Bank (+0.3%) gained grounds with exception of Sampath Bank (-1.4%).

Sampath Bank declined during the session subsequent to the rating downgrade by Fitch Rating. Fitch downgraded the national long term rating of Sampath Bank AA- to A+ citing weakening of the capitalization relative to its peers, which offset benefits from the growth of its franchise. The counter declined to LKR 248.10, -3.2%, but recovered to close at LKR 252.90, -1.4%. However, commenting to the report Sampath Bank announced in CSE saying that the bank has been adopting a policy of leveraging its capital to an optimum level and will assure that it will always maintain a capital buffer adequate enough to support the future business expansion and risks.

Expolanka declared an interim dividend of LKR 0.12 per share during the trading session. The counter advanced to LKR 8.10, +1.3% but closed at LKR 8.00, 0.0%.

Foreign investors extended selling streak for the seventh consecutive day with a net outflow of LKR 578mn. Foreign participation was 39%. Net foreign outflows were seen Dialog Axiata (LKR 554mn), John Keells Holdings (LKR 68mn) and Commercial Bank (LKR 17mn) while net foreign inflow was mainly seen in Hemas Holdings (LKR 77mn). Subsequent to today’s foreign outflows, the year to date net foreign inflow dropped below LKR 1bn to LKR 513mn.

Lanka Securities Research