Colombo equity market started weekly operations on optimistic note where main index advanced for the second consecutive day, reflecting the positive investor sentiment. Main index inclined by 17.69 index points or 0.25% to end at 7,078.97 while 20-scrip S&P SL index gained 12.95 index points (+0.33%) to close at 3,926.96.

Price appreciations in high cap counters such as Dialog Axiata (closed at LKR 11.40, +2.7%), Commercial Bank (closed at LKR 163.00, +1.2%) and Nestle Lanka (closed at LKR 2,125.00, +1.2%) contributed positively to index performance.

Daily market turnover was LKR 731mn. Nations Trust Bank topped the turnover list with LKR 245mn underpinned by several crossings of 2.5mn shares at LKR 98.00 and turnover from the counter accounted for 34% of the total turnover.

A single crossing was recorded in John Keells Holdings (0.1mn shares at LKR 193.00) and aggregate value of crossings accounted for 37% of the total turnover. Accordingly, John Keells Holdings, City Housing and Real Estate and Access Engineering were next best contributors to the turnover with LKR 134mn, LKR 31mn and LKR 29mn respectively.

Gainers surpassed losers, 99 to 95, while 53 counters remained unvaried. Cash map slipped to 56% from 68%. 10 counters touched 52wk low prices while 6 counters managed to reach 52wk high price levels.

City Housing and Real Estate attracted heavy investor preference where counter reached to a new 52wk high price of LKR 19.30 but closed lower at LKR 18.20 (+9.0%). Further, Access Engineering, Adam Capital and Asian Alliance Insurance were among heavily traded counters. Asian Alliance counters reached to a fresh 52wk high price of LKR 184.00 (+6.7%).

Despite the dividend announcement of LKR 1.80 per share in Central Finance, counter closed with flat returns.

Meanwhile FLC Hydro Power (HPFL) announced that the Thebuwana Mini Hydro Plant, which is owned by HPFL, commenced its commercial operations on 11th June 2015. The completion of the project, the total generation capacity of the HPFL has increased to 4.9Mw. Stock closed below at LKR 7.40 (-2.6%).
Foreign investors were net buyers with a net inflow of LKR 120mn. Foreign participation was 34%. Net foreign inflows were seen in Nations Trust Bank (LKR 244mn), Laugfs Gas non-voting (LKR 12mn), Access Engineering (LKR 11mn) while net foreign outflow was mainly seen in John Keells Holdings (LKR 123mn).

Lanka Securities Research