Colombo bourse regained lost grounds on Thursday where the foreign investors lift their activity to record the highest foreign participation after 17 months. Activity level of the foreigners increased during the week to record average of 59% of the market activity, amid the positive sentiments triggered in the UNHCR session, favoring the country and its economy.

Benchmark index gained 29.61 index points (+0.42%) to end at 7,080.48 and 20-scrip S&P SL index recorded marginal gains of 10.18 index points or 0.27% to close at 3,836.33.

Price advances in high caps such as Dialog Axiata (closed at LKR 11.10, +1.8%), Commercial Leasing & Finance (closed at LKR 4.20, +5.0%) and Lion Brewery (closed at LKR 630.00, +1.6%) pushed index performance to greener territory.

Daily market turnover crossed LKR 1bn for the second consecutive day to record LKR 1.8bn, boosted by hefty crossings which accounted for 71% of the total turnover. Off-the-floor dealings were witnessed in John Keells Holdings (2.5mn shares at LKR 171.00), Kelani Tyre (3.5mn shares at LKR 78.80), Nations Trust Bank (2.3mn shares at LKR 98.00), Commercial Bank (1.2mn shares at LKR 160.00) and Ceylinco Insurance (0.1mn shares at LKR 1,450.00).

Accordingly, John Keells Holdings emerged as the top contributor to the turnover with LKR 521mn followed by Commercial Bank (LKR 290mn), Kelani Tyre (LKR 277mn) and Nations Trust Bank (LKR 268mn).

Lanka IOC attracted heavy retail investor participation and counter reached LKR 43.20 but closed lower at LKR 42.70 (+3.6%). Further increased activity was witnessed in shares of Richard Pieris, where the stock closed higher at LKR 8.80 (+3.5%).

Bimputh Finance and Sinhaputhra Finance continued to be on the list of the high trades. Bimputh Finance closed at LKR 135.70 (+5.0%) while Sinhaputhra Finance main share closed at LKR 23.30 (+4.0%).

Out of 231 counters, 142 advanced, 46 slipped while 43 remained unchanged. Cash map advanced from 45% to 56%. 5 counters touched 52wk high prices while 10 counters touched 52wk low price levels. Both DFCC Bank and Union Bank scripts touched fresh 52wk low prices of LKR 182.10 and LKR 21.40 respectively.

During the opening hours, main share of John Keells Holdings advanced to LKR 172.00 but failed to retain the momentum and closed at LKR 170.00 (+0.2%).

DFCC Bank announced that the bank has obtained a commercial banking license from monetary board of CBSL and will be operating as a licensed commercial bank with effect from 01st October 2015.

Meanwhile Bank of Ceylon announced that the LKR 8bn debenture issue which opened today for subscriptions was oversubscribed within hours of the opening. Accordingly the issue was closed today.

Foreign investors closed the session on buying side with a net foreign inflow of LKR 284mn. Foreign participation was 68%. Net foreign inflows were seen in Nations Trust Bank (LKR 265mn), Commercial Bank (LKR 25mn), Hemas Holdings (LKR 16mn) while net foreign outflow was mainly seen in John Keells Holdings (LKR 25mn).

Lanka Securities Research