Colombo stock market started weekly operations on mixed note on Monday despite the high institutional investor activity ahead of the 10th monetary policy review of the year. Benchmark index closed the session with flat returns at 7,017.35, down by 3.39 index points or 0.05%. S&P SL20 index gained 9.56 index points (+0.25%) to close at 3,783.27.

High caps such as Cargills (Ceylon) (closed at LKR 162.20, -7.3%), Sri Lanka Telecom (closed at LKR 47.50, -1.7%) and Vallibel One (closed at LKR 22.50, -1.8%) dragged index performance to negative territory while counters namely Chevron Lubricants (closed at LKR 369.90, +4.2%) and Dialog Axiata (closed at LKR 11.30, +2.7%) supported the 20-scrip S&P index to post marginal gains.

Daily market turnover crossed LKR 1bn to record a two week high of LKR 1.2bn supported by hefty crossings which contributed 60% of the total turnover. Off-the-floor dealings were recorded in Nations Trust Bank (5.5mn shares at LKR 99.00), People’s Leasing & Finance (5.3mn shares at LKR 20.40), Aitken Spence (0.5mn shares at LKR 94.00) and Ceylon Tobacco Company (0.03mn shares at LKR 970.00).

Accordingly, Nations Trust Bank topped the turnover list with LKR 541mn followed by People’s Leasing & Finance (LKR 235mn), Aitken Spence (LKR 49mn) and Chevron Lubricants (LKR 33mn) respectively.

Out of 251 counters, 102 advanced, 93 declined while 56 counters remained unchanged. Cash map slipped from 51% to 35%. 23 stocks touched 52wk low price levels while only Hayley Fibre (LKR 75.00) managed to reach 52wk high price levels.

Subsequent to the 97%YoY profit decline in Autodrome, stock closed lower at LKR 1,011.00, down by 14.6%. Meanwhile, Vidullanka announced that the company is planning to acquire Lower Kotmale Oya Hydro Power (Pvt) Ltd via cash consideration of LKR 58.4mn and share swap of 31.25mn shares in Vidullanka. Counter remained unchanged at LKR 6.80.

The Finance non-voting, Hayleys Fibre, People’s Leasing & Finance and Swarnamahal Finance witnessed high investor activity. Banks such as DFCC Bank (LKR 173.30), Union Bank (LKR 21.00) and Amana Bank (LKR 4.80) touched 52wk low prices.

Foreign investors were net sellers with a net foreign outflow of LKR 174mn. Foreign participation was 22%. Net foreign outflows were seen in People’s Leasing & Finance (LKR 204mn), Hatton National Bank non-voting (LKR 13mn), Swisstek (Ceylon) (LKR 5mn) while net foreign inflow was mainly seen in Textured Jersey (LKR 10mn).

Lanka Securities Research