Colombo bourse regained lost grounds on Tuesday where investor sentiments turned positive as Central Bank decided to keep the policy rates unchanged. All share index bagged 23.91 index points (+0.34%) to end at 7,041.26 while 20-script S&P SL index gained 15.56 index points or 0.41% to close at 3,796.86.

Index performance was driven by price increases in blue-chips namely Commercial Bank (closed at LKR 160.00, +1.3%), People’s Leasing & Finance (closed at LKR 21.40, +4.4%) and Dialog Axiata (closed at LKR 11.30, +0.9%).

Daily market turnover was LKR 970mn. John Keells Holdings emerged as the top contributor to the turnover with LKR 309mn underpinned by two crossing of 1.0mn shares at LKR 171.00 and accounted for the 32% of the total turnover. Lanka IOC (LKR 102mn), Distilleries (LKR 70mn) & Overseas Realty (LKR 62mn) were next best contributors to the turnover.

Several crossings were recorded in Lanka IOC (1.8mn shares at LKR 43.50) and Overseas Realty (2.0mn shares at LKR 22.00). Aggregate value of crossings represented 30% of the total turnover.

Reflecting the optimistic investor interest, out of 244 traded scripts, 131 advanced, 50 slipped while 63 scripts remained unchanged. Cash map marginally improved from 35% to 36%. Hayleys Fibre (LKR 78.50) managed to reach 52wk high prices while 15 counters stepped to 52wk low price levels.

Hayleys Fibre continued to attract high investor preference where counter managed to reach a fresh 52wk high price of LKR 78.50 but closed lower at LKR 77.10 (+4.2%). Alufab, LB Finance and Laugfs Gas non-voting were among heavily traded stocks.

Poultry segment counters such as Ceylon Grain Elevators (LKR 113.10, +0.2%), Three Acre Farms (LKR 151.0, +0.7%) and Bairaha Farms (LKR 232.00, +1.7%) closed with positive gains.

Subsequent to the interim results of Industrial Asphalts, counter remained little changed at LKR 450.00 (+0.02%) in response to the marginal 0.5%YoY dip in September quarter earnings. Meanwhile, Janasahkthi Insurance declined to a 52wk low price of LKR 18.90 but closed with flat returns at LKR 19.00 on the day following the XR date.

Foreign investors closed the session on selling side with a net foreign outflow of LKR 5mn. Foreign participation improved from 22% to 42%. Net foreign outflows were seen in John Keells Holdings (LKR 62mn), Distilleries (LKR 21mn) & Tokyo Cement (LKR 15mn) while net foreign inflow was mainly seen in Lanka IOC (LKR 83mn).

Lanka Securities Research