Colombo equities started the weekly activities on Monday with negative returns amid political uncertainties affecting investor sentiment. The benchmark All Share Price index declined marginally by 4.66 points or 0.07% to end at 7,125.12 while S&P SL 20 index marginally lost 2.47 points (-0.06%) to end at 4,020.79.

The losses were driven by price depreciations in counters such as Ceylon Brewery (closed at LKR 851.00, -5.4%), Sri Lanka Telecom (closed at LKR 47.00, -0.8%) and Chevron Lubricants (closed at LKR 402.00, -0.6%).

Daily market turnover was at LKR 670mn. Hemas Holdings Rights commenced trading today and emerged as the top contributor to the turnover with LKR 114mn, which was 17% of the market turnover. Laugfs Gas (LKR 67mn) and Swisstek (LKR 62mn) recorded next best contributions to the turnover. No crossings were recorded today.

Gainers surpassed the losers 102 to 87 while 57 counters remained unchanged. Cash map declined to 55% from 64%. Six counters touched 52wk high prices while only Singhe Hospitals and Anilana Hotels and Properties dropped to 52wk low prices. Anilana Hotels and Properties closed at a 52wk low price of LKR 4.90, -2% while Singhe Hospital recorded a 52wk low price of LKR 2.40.

Financial sector counters such as Vallibel Finance, Singer Finance, Abans Financial Services and Commercial Credit & Finance touch 52wk high prices during the session. Vallibel Finance recorded a 52wh high price of LKR 52.30, +3.6% (closed at LKR 52.00, +3%) while Commercial Credit recorded a 52wk high price of LKR 65.00, +5.5% but closed at LKR 62.50, -1.4%. Singer Finance and Abans Financial Services closed at 52wk high prices of LKR 22.00, +3.8% and LKR 33.00, +25% respectively.

Further shares of Swisstek, Abans Financial Services, Softlogic Finance and ACME Holdings were among heavily traded counters. Swisstek touched a 52wk high price of LKR 54.80, but closed at LKR 54.50. Hemas Holdings rights also attracted investor interest on the first day of trading. The rights traded at a high price of LKR 3.40, -24.4% in the morning session but closed lower at LKR 2.90, -35.6%.

Meanwhile Union Chemicals advanced to LKR 480.00 with a gain of 2.1% today subsequent to the positive quarterly earnings. Union Chemicals recorded a profit growth of 41%YoY to LKR 23mn in 1QFY2015. The counter also declared a final dividend of LKR 7.00 per share.

Moreover Softlogic Holdings declared a final dividend of LKR 0.25 per share.

Foreign investors turned to be net buyers with a net foreign inflow of LKR 149mn after three consecutive days of net foreign outflows. Foreign participation was high at 26%. Net foreign inflows were seen in Laugfs Gas (LKR 66mn), John Keells Holdings (LKR 23mn) and Singer Finance (LKR 4mn) while net foreign outflow was mainly seen in CIC Holdings (LKR 16mn).

PCH Holdings made an announcement to CSE informing that the company has decided to incorporate a fully owned subsidiary for the purpose of operating a Micro Finance Business in Sri Lanka and to act as a placement agent to canvas for investment in the Treasuries and in the corporate debt market.

Lanka Securities Research